A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

Abstract

Whether the upstream and downstream members in a supply chain (considering environmental objectives) simultaneously stabilize economic benefits has become an important problem in the process of green development. However, few quantitative studies on green supply chains have considered environmental and economic benefits to realize multi-objective optimization. To study operation and cooperation strategies with a consideration of the different objective on the level of supply chain, we first establish a green supply chain game model with profit and environment objectives simultaneously considered by the manufacturer. Then, we analyze the multi-objective decisions of the supply chain members under centralized control using a manufacturer-led Stackelberg game and revenue-sharing contract. Using the manufacturer's environmental preference as a variable, the effects of environmental benefits on the supply chain are also investigated. Finally, this study determines that the manufacturer's profit will be reduced after considering the objective of environmental benefits, while the retailer's profit, product greenness, and environmental benefits will be improved. Meanwhile, the total profit of the green supply chain will first increase and then decrease. In particular, a revenue-sharing contract can facilitate the coordination of multiple objectives; in this way, both the manufacturer and the retailer achieve higher profits and environmental benefits compared to a decentralized control condition, which is of great significance in achieving a win-win situation for the economy and the environment.

Coordination of Supply Chains with Competing Manufacturers considering Fairness Concerns

“…(3) According to game theory, this paper establishes a manufacturer-led Stackelberg game model, and the dynamic game order of the supply chain is as follows [22,23]: firstly, the two manufacturers determine their wholesale prices W i according to each other's prices. en, the retailer reacts to determine the product's retail price P i .…”

Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions

“…By introducing competing products, Zhang et al [17] consider the coordination strategy of a green supply chain with hybrid production mode. Jian et al [18] study a multi-objective optimization model of GSC by considering environmental benefits. Motivated by the studies, we treat green level as an exogenous parameter at first to investigate the impact of the competitiveness on the channel structure strategy of supply chains.…”

A Path-Based Selection Solution Approach for the Low Carbon Vehicle Routing Problem with a Time-Window Constraint

“…For example, more attention is paid to minimize costs in large-scale distribution, while more attention is paid to timeliness in drug distribution. Therefore, in order to make this study more suitable for the actual needs, four different objective functions were designed, including the shortest distance objective function, the shortest time objective function, the minimum fuel consumption objective function and the minimum cost objective function, as shown in Formulas (22) and (23).…”

“…Minmize (22) In order to obtain the travel solution with the shortest time, the following function was designed in this paper: (23) In order to obtain the travel solution with the least fuel consumption and the minimum cost, we employed Equations (6) and 7as the objective functions. Different models use the same constraint conditions, i.e., Constraints (18)-(21).…”

“…Based on the analysis above, it can be concluded that the former research on vehicle routing problems with time windows (VRPTW) and PEP focused on the factors of traffic congestion, vehicle composition and vehicle load, etc., rather than multi-path vehicle routing problems [21][22][23]. Therefore, a multi-path mixed-integer mathematical programming model with a time window was established, which aimed to optimize fuel cost, driver cost, vehicle depreciation and time-window penalty cost and determine the exact solution using CPLEX in Java.…”