Resilient and Sustainable Supply Chain Design Under Uncertainty

Abstract: Resilience and sustainability are major topics of interest in supply chain design and are well-studied over the past few decades. However, few studies have focused on modeling both topics together and exploring the interactions between them. We propose a multi-objective two-stage stochastic programming approach to design a supply chain under demand and supply uncertainties that considers resilience and sustainability. The model includes four objective functions: cost minimization, environmental impact minimization, social impact maximization, and resilience maximization. Augmented e-constraint method is applied to obtain Pareto optimal solutions and tradeoff analysis is conducted between resilience and sustainability objectives to investigate the interactions between these two topics based on strategic decisions. Strategic decisions are modeled in the form of backup suppliers with different cost, resilience, and sustainability profiles. The proposed model is able to determine strategic decisions that improve resilience and sustainability of the supply chain simultaneously. A numerical example is used to illustrate the application of the model and it is used as a basis for discussing practical and managerial insights and avenues for further research.

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