New Sustainable Approach for Multi-Objective Production and Distribution Planning in Supply Chain

Abstract

The paper aims to introduce a sustainable approach for aggregate production and distribution planning in a supply chain (APDP-SC) that considers multiple objectives and fuzzy parameters. The proposed approach addresses sustainability concerns, including maximizing total profit and total sales of the entire supply chain, balancing profit satisfaction between supply chain members, minimizing CO₂ emissions from raw materials, production processes, and transportation of goods in the supply chain, and maximizing goodwill score from corporate social responsibility (CSR) activities. To determine the compromised solution, this paper develops a fuzzy multiple objectives mixed integer linear programming (FMOLP) model and a de-fuzzified model. The results of a simplified real case demonstrate that the proposed approach and model effectively determine the compromised solution and outperform comparison models that lack important features. Notably, this manuscript is the first to integrate the decision on conducting CSR activities with the APDP-SC decisions.