Sustainable supply chain network design: A case of the wine industry in Australia

Mohsen Varsei, Sergey Polyakovskiy

Research output: Contribution to journalArticlepeer-review

121 Citations (Scopus)

Abstract

This paper comes at a time when many companies and people are increasingly facing various global problems linked to sustainability challenges, and when the literature is still scarce on research incorporating all three dimensions of sustainability in supply chain analytical models. The paper conducts a case-based modeling study to address this gap in the area of supply chain network design. We investigate the wine supply chain and propose a generic model for sustainable wine supply chain network design encompassing economic, environmental and social objectives. The case company is a real large-sized wine company located in Australia, for which a customized model is provided. Both models are formulated as a multi-objective mixed-integer program and solved using the augmented ϵ-constraint method by CPLEX. Social implications of the feasible scenarios are examined through introducing social impact coefficients. Non-dominated solutions are obtained and some balanced scenarios are proposed. The results show trade-offs between the objectives, yet more interestingly demonstrate how large is the gap between the existing supply chain configuration and the proposed scenarios in terms of supply chain cost and emissions.
Original languageEnglish
Pages (from-to)236-247
Number of pages12
JournalOmega (United Kingdom)
Volume66
DOIs
Publication statusPublished - 1 Jan 2017
Externally publishedYes

Keywords

  • Carbon emissions
  • Multi-objective optimization
  • Social impact coefficient
  • Supply chain network design
  • Sustainability
  • Wine industry

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