Strategic and operational supply chain network design to reduce carbon emission considering reliability and robustness

Supply chain network design considering CO2 emission is addressed in this paper. The CO2 emission is investigated through two aspects in our proposed model. From the first aspect, strategic decisions are made in the design phase of the supply chain to invest in equipment with low emissions in factories. In fact, carbon emission costs are taken into account along with fixed and variable costs of location and production. Furthermore, in terms of operational planning, CO2 gas emissions related to transportation modes and production are embedded in the model. The proposed model also takes into consideration the uncertain demand and production costs to more compatibility with the real world industries. A robust approach is used to formulation the model to overcome the uncertain parameters. Moreover, the risk of facilities' disruption is predicted under different scenarios and a reliable model is presented. A solution approach is advised based on Benders' decomposition algorithm and computational studies show its efficiency. The computational results demonstrate the effectiveness, reliability and robustness of the model. The different sensitivity analyses are carried out to provide useful managerial insights. (C) 2017 Elsevier Ltd. All rights reserved.