Cost Minimization and Environmental Impact Reduction on the Basis of Green Supply Chain Management Concept
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1 Inenaiona Confeence on Mechanica, Indusia and Maeias Engineeing 2017 (ICMIME2017) Decembe, 2017, RUET, Rashahi, Bangadesh. Pape ID: IE-129 Cos Minimizaion and Envionmena Impac Reducion on he Basis of Geen Suppy Chain Managemen Concep Md. Saifu Rahman 1, Md. Hasan Ai 2, A.S.M. Taiq Hoque 3 1 Depamen of Science and Engineeing, Chiagong BGMEA Insiue of Fashion and Technoogy, Chiagong, Bangadesh 2 Depamen of IPE, Bangadesh Amy Univesiy of Science and Technoogy, Saidpu, Bangadesh 3 Suppy Chain Depamen, RFL Eeconics Limied, Dhaa, Bangadesh 1 saifu.sasa@gmai.com, 2 hasanue38@gmai.com, 3 ushe029@gmai.com Absac The Geen suppy chain managemen (GSCM) is an effecive way o diffeeniae a company fom is compeios. Companies ha have adoped GSCM pacices wih a focus on disibuion aciviies have successfuy impoved hei business and envionmena pefomance on many eves. Due o he concen of Envionmena pefomance index (EPI) of Bangadesh he mao aciviies of he Geen suppy chain managemen namey; geen fowad ogisics and geen cabon emission ae ae being coveed hee. In his sudy, a mahemaica mode o sove he Geen suppy chain managemen pobems which ae emeged because of envionmena esponsibiiies was poposed and deveoped. Minimizaion of anspoaion cos fo fowad ogisics, amoun of GHG gas emission ae and penay cos fo his emission wee deemined by using Lingo Minimizaion of anspoaion cos was deemined T and penay cos fo GHG emission was T Keywods: Geen Suppy Chain Managemen, Geen Puchasing, Geen Manufacuing, Geen Disibuion, Fowad Logisics. 1. Inoducion Tadiionay suppy chain sas wih aw maeia suppies and end wih cusomes incuding manufacuing pocess, ogisica suppo, soage, and disibuion. The suppy chain efes o a hose aciviies associaed wih he ansfomaion, fow of goods, and sevices incuding hei aendan infomaion fows fom he souces of maeias o end uses. In 20 h cenuy, he voice agen envionmena pouion has become songe. So, eco-fiendy manufacuing and anspoaion sysem has become an impoan faco fo oganizaions. As a esus, he concep of geen suppy chain managemen (GSCM) is geneaed. Geen Suppy chain is he inena, and exena pacice of emission of ess geenhouse gases, soid wase managemen, and ai pouion. Geen suppy chain managemen (GSCM) is used no ony o baance he economy wih ecoogy bu aso maximum uiizaion of esouces, enegy, fue enhance, and company banding. Theefoe, he enepises need o deveop a cosed oop eaionship wih suppies of ecyced maeias, and ecyced pas. In his sudy, a GSCM newo opimizaion pobem whee CO 2 gas emissions accoding o ucs opions, and ecycabe poducs ae consideed o become a mio of geenness wee anayzed. A penay cos o peven moe CO 2 gas emissions, and o encouage he cusomes o use ecyce abe poducs wih sma pofi ae deemined. 2. Lieaue eview Suppy Chain Managemen (SCM) as a newo of faciiies and disibuion opions ha pefoms he funcions of pocuemen of maeias, ansfomaion of hese maeias ino inemediae and finished poducs, and disibuion of hese finished poducs o cusomes. The suppy chain as he newo of oganizaions ha ae invoved hough upseam and downseam inages in he diffeen pocesses and aciviies ha poduce vaue in he fom of poducs and sevices in he hands of he uimae cusome. Numeous aices deaing wih he heoy and pacice of SCM have been pubished ove he eviewed peiod of as 18 yeas, bu he opic is si unde consideabe deveopmen and debae. The need fo an ine-discipinay appoach, combining he echnica and eaiona aspecs fom he especive fieds of sysem dynamics and coaboaion in ode o deive supeio ode epenishmen pefomance [1]. Vendo coodinaion modes ha have used quaniy discoun as coodinaion mechanism unde deeminisic envionmen and cassified he vaious modes. Thei sampe addessed manufacuing and consume goods indusies, and he eseach aices eviewed by hem
2 focused on a moe naowy defined opeaions managemen appoach o Suppy Chain Managemen [2]. A GSC (Geen Suppy Chain) aims a confining he wases wihin he indusia sysem in ode o conseve enegy and peven he dissipaion of dangeous maeias ino he envionmen [3]. Significan gowh has aen pace boh in he pacice and heoy of suppy chain managemen since his aemp, maing i necessay fo eviews of cuen nowedge and ieaue. Thee is a age of amoun of ieaue on suppy chain newo design concened wih envionmena issues hough he GSC newos. GSCM invoves envionmena cieia, o concens, ino oganizaiona puchasing decision, and ong em eaionships wih suppies. Evauaion Famewo of Envionmena Impacs and Coss of Tanspo (EFECT) which is a geneaized mehodoogica famewo fo evauaing he impacs esuing fom anspoaion poecs wih a specific oienaion o envionmena impacs [4]. The innovaive aspec of he mehodoogica famewo is he combinaion of Mui- Cieia Anaysis (MCA) wih Cos-Benefi Anaysis (CBA) mehods o come up wih an ovea assessmen of anspo iniiaives impacs ove diffeen geogaphica egions and ime peiods. The componens and eemens of GSC managemen, and how hey seve as a foundaion fo he decision famewo have been discussed [5]. The ange of he suppy chain o incude e-use and ecycing houghou he ife cyce of poducs and sevices [6]. Using hei definiion, hey poposed he muipe aibue uiiy heoy mehod assessing a suppy chain consideing his appoach o be one of he GSC mehods [7]. The chaenges and oppouniies facing he suppy chain of he fuue, descibed susainabiiy, effecs on suppy chain design, managemen, and inegaion. Tadiiona, and GSCs ae compaed, conased via focusing sevea impoan oppouniies in GSC managemen in deph, incuding hose in manufacuing, bio-wase, consucion, and pacaging [8]. In Wang and Hsu sudy, he inegaion of fowad and evese ogisics was invesigaed, and a geneaized cosed-oop mode fo he ogisics panning was poposed by fomuaing a cycic ogisics newo pobem ino an inege inea pogamming mode [9]. Moeove, he decisions fo seecing he paces of manufacoies, disibuion cenes, and dismanes wih he especive opeaion unis wee suppoed wih he minimum cos. Kannan e a. deveoped a mui echeon, mui peiod, mui poduc CLSC (cosed-oop suppy chain) newo mode fo poduc euns and he decisions ae made egading maeia pocuemen, poducion, disibuion, ecycing and disposa. The poposed heuisics based geneic agoihm (GA) is appied as a souion mehodoogy o sove mixed inege inea pogamming mode (MILP) [10]. Yang e a. deveoped a mode of a genea CLSC newo, which incudes aw maeia suppies, manufacues, eaies, consumes and ecovey cenes [11]. In his sudy a mahemaica mode was poposed and deveoped fo an inegaed suppy chain newo. Minimizaion of anspoaion cos fo fowad ogisics and penay cos fo GHG gas emission was deemined fom he mahemaica mode by using Lingo Mehodoogy 3.1 Mahemaica mode fomuaion In his secion a suppy chain newo was consideed, based on five assumpions and he newo sucue. A mahemaica mode was deveoped o descibe he goa of his sudy. Definiions of vaiabes and paamees in he geen suppy chain newo ae summaized beow: Tabe 1. Indices I he numbe of suppie 1,2,3,.i I L he numbe of cusomes wih 1,2,..i L J he numbe of pans wih 1,2, J R he numbe of aw end maeias wih 1,2, R K he numbe of disibuion cenes (DCs) wih T he numbe of ucs wih 1,2, T 1,2,. K Tuc ena fee paamees: H i H H he ena fee of uc duing he anspoaion suppie i and pan he ena fee of uc duing he anspoaion pan and disibui on cene (DC) he ena fee of uc duing he anspoaion pan and waehouse H H H he ena fee of uc duing he anspoaion wae house and disibui on cene (DC) he ena fee of uc duing he anspoaion wae house and cusome he ena fee of uc duing he anspoaion disibui on cene (DC) and cusome ``2
3 Geenhouse gas emission paamees in fowad ogisic: CO i 2 uni CO2 emission fo uc duing he anspoaion suppie i and pan CO 2 uni CO2 emission fo uc duing he anspoaion pan and disibui on cene (DC) CO 2 uni CO2 emission fo uc duing he anspoaion pan and waehouse CO 2 uni CO2 emission fo uc duing he anspoaion disibui on cene (DC) and cusome CO 2 uni CO2 emission fo uc duing he anspoaion wae house and disibui on cene (DC) CO i 2 uni CO2 emission fo uc duing he anspoaion wae house and cusome Capaciy paamees of faciiies: Ca i capaciy of poduc a suppie i Ca capaciy of poduc a pan Ca capaciy of poduc a waehouse Ca capaciy of poduc a disibui on cene (DC) Tuc Capaciy paamees in fowad ogisic: Ca i Ca Ca Ca anspoaion capaciy of uc depas fom suppie i anspoaion capaciy of uc depas fom pan anspoaion capaciy of uc depas fom waehouse anspoaion capaciy of uc depas fom disibui on cene (DC) Fowad ogisics vaiabes: X i Y Z anspoed aw maeia via uc fom suppie i o pan anspoed poduc anspoed poduc via uc fom pan o disibui via uc fom pan o waehouse on cene (DC) Q W E anspoed poduc via uc fom waehouse o disibui on cene (DC) anspoed poduc via uc fom waehouse o cusome 1 anspoed poduc via uc fom disibui on cene (DC) o cusome 1 Obecive Funcion: Minimizing anspoaion cos in fowad ogisic: i i i X i H + Y i i W H + E H i H + Z i H + i Q H + Faciiy capaciy consains in fowad ogisic: i X i Ca ; i, Z + Y Ca ;, Q W Ca ; + E Ca ;, The equiibium consains in fowad ogisic: X i = Z + Y Z + W = Q ``3
4 Y W + + E Q = = De E Minimum oa cabon emission in fowad ogisic: CO2 P ( g i W i X i CO2 i CO2 + + Y CO2 E CO2 ) + Z CO2 + Q CO2 + Faciiy capaciy consains: i X i Ca ; Z + Y Q + W E Ca ; i, Ca ; Ca, ;, The equiibium consains: X i = Z + Y Z = Q + W = Y W + + Q E = De E 4. Daa Anaysis and Resu RFL goup is a eading pasic maeia manufacue consising moe han 100 disibuion cene, and moe han 1000 eaie. To avoid excessive compexiy, we conside one suppie, one pan, one waehouse, wo disibuion cene, hee eaies wee consideed as cusome in ou cacuaion. Two diffeen ype of ucs wee aso consideed. One is igh uc and anohe one is heavy uc. Cusome 1 Cusome 2 Cusome 3 DC 1 Waehouse DC 2 Pan Suppie Fig. 1. Mode newo of fowad ogisics 4.1 Tanspoaion cos cacuaion in fowad ogisic Uni anspoaion cos of poposed suppy chain newo hough suppie, pan, waehouse, disibuion cene and cusome was shown in abe 2 o 4. Tabe 5 and 6 showed ha uni maeias capaciy and ``4
5 anspoaion equipmen capaciy fo disibuion of maeias and poduc. Cusome demand was shown in abe 7. Tabe 2. Tanspoaion cos of suppie-pan-waehouse-dc (T./uni) Suppie Pan Waehouse Pan Waehouse DC 1 DC 2 Tuc (L) Tuc (H) Tabe 3. Tanspoaion cos of pan-dc, waehouse-cusome (T./uni) Pan Waehouse DC 1 DC 2 Cusome 1 Cusome 2 Cusome 3 Tuc (L) Tuc (H) Tabe 4. Uni Tanspoaion cos of DC-Cusome (T./uni) Disibuion Cene DC 1 DC 2 Cusome 1 Cusome 2 Cusome 3 Cusome 1 Cusome 2 Cusome 3 Tuc (L) Tuc (H) Tabe 5. Maeia capaciies of Suppies-Pans-Waehouse-Disibuion Cenes (uni) Suppie Pan Waehouse Disibuion Cene DC 1 DC 2 Maeia Capaciy Tabe 6. Tanspoaion equipmen capaciy (uni/uc) Suppie Pan Waehouse Disibuion Cene Tuc (L) Tuc (H) Tabe 7. Cusome Demand (Uni) Cusome Cusome 1 Cusome 2 Cusome 3 Demand (Uni) Tadiionay, he company uses he igh weigh uc as hei ogisica suppo. Toa anspoaion cos of his ogisic sysem is T. 77, The same Linea pogamming mode wih LINGO 14.0 was soved, and he opimum vaue is T GHG emission and penay cacuaion fo fowad ogisic CO 2 emission ae fo ucs hough suppie, pan, waehouse, disibuion cene and cusome was shown in abe 8 o 10. Minimizaion of oa anspoaion cos in fowad ogisic and minimizaion of oa CO 2 emission and penay cos was shown in abe 11. Aso abe 11 incude he ieaions numbe equied o poduce he opimizaion esu in Lingo Tabe 8. CO 2 emission ae fo ucs in suppie-pan-waehouse-dc (uni) Suppie Pan Waehouse Pan Waehouse DC 1 DC 2 Tuc (L) Tuc (H) Tabe 9. CO 2 emission ae fo ucs in pan-dc, waehouse-cusome (uni) Pan Waehouse DC 1 DC 2 Cusome 1 Cusome 2 Cusome 3 Tuc (L) Tuc (H) ``5
6 Tabe 10. CO 2 emission ae fo ucs in DC-cusome (uni) Disibuion Cene DC 1 DC 2 Cusome 1 Cusome 2 Cusome 3 Cusome 1 Cusome 2 Cusome 3 Tuc (L) Tuc (H) Tabe 11. Resu evauaion Definiion Vaue Ieaion numbe Time equied (sec) Minimizaion of oa anspoaion cos T in fowad ogisic Minimizaion of oa CO 2 emission and penay cos T Wih using LINGO 14.0 opimum cabon emission is 1,11, gams. Fo a sma pan penay is imposed afe emission of 20g CO 2. Penay is couned fo ( = 91340gam) CO 2 emission. Toa penay cos is T Discussion Companies have made emendous sides in auomaing ansacion pocessing and daa capue eaed o geen suppy chain and ogisics fowad opeaions. Whie hese innovaions have educed cos by educing manua effo. In his sudy cos minimizaion and GHG gas emission penay cos fo fowad ogisics was deemined accoding o he mahemaica mode by using Lingo Afe ieaion 3, minimizaion of oa anspoaion cos in fowad ogisics was T geneaed in 0.05 sec. Aso minimizaion of oa CO 2 emission and penay cos was T geneaed afe ieaion Concusion Changes in he sae of he envionmen, eading o subsequen pubic pessue and envionmena egisaion have necessiaed a fundamena shif in suppy chain pacices. The disinguishing feaue of he poposed mode is consideing he envionmena effecs on suppy chains. In his sudy, a mahemaica mode o sove he Geen suppy chain managemen pobems which ae emeged because of envionmena esponsibiiies was poposed and deveoped. This sudy heps oganizaions o ae decisions fo anspoaion concen wih he envionmena effec. 7. Acnowedgemen The auhos ae gaefu o PRAN RFL Company Ld. and D. Md. Shafiu Fedous fo hei aid in his eseach. 8. Refeences [1]. H. Baumgane and R. Piee, The Sucua Infuence of Maeing Jounas: A Ciaion Anaysis of he Discipine and Is Subaeas Ove Time, Jouna of Maeing, Vo. 67, No. 2, pp , [2]. M. Nagaaan and I.G. So, Sabe Fa Sighed Coaiions in Compeiive Maes MANAGEMENT SCIENCE, Vo. 53, No. 1, pp , [3] T.E. Gaede, and B.R. Aenby, Indusia Ecoogy, Engewood, NJ: Penice Ha, [4]. D. Tsambouas and G. Mioudis, EFECT-evauaion Famewo of Envionmena Impacs and Coss of Tanspo Iniiaives, Tanspoaion Reseach Pa D, Vo. 5, No. 4, pp , [5]. J. Sais, A Saegic Decision Famewo fo Geen Suppy Chain Managemen, Jouna of Ceane Poducion, Vo. 11, pp , [6]. Y. Kainuma and N. Tawaa, A Muipe Aibue Uiiy Theoy Appoach o Lean and Geen Suppy Chain Managemen, Inenaiona Jouna of Poducion Economics, Vo. 101, No. 1, pp , [7]. B.M. Beamon, Susainabiiy and he Fuue of Suppy Chain Managemen, Opeaions and Suppy Chain Managemen, Vo. 1, No.1, pp. 4-18, [8]. C.H. Johnny, K.S. Mauice, T. T. Liang and S.A. David, Oppouniies in Geen Suppy Chain Managemen, The Coasa Business Jouna, Vo. 8, No. 1, pp. 1-14, [9] H-S. Wang and H-W. Hsu, A Cosed-Loop Logisic Mode wih A Spanning Tee Based Geneic Agoihm, Compues & Opeaions Reseach, Vo. 37, No. 2, pp , [10] G. Kannan, P. Sasiuma and K. Devia, A Geneic Agoihm Appoach fo Soving a Cosed Loop Suppy Chain Mode: A Case of Baey Recycing, Appied Mahemaica Modeing, Vo. 34, No. 3, pp , [11] G. Yang, Z. Wang, X. Li, The Opimizaion of he Cosed-Loop Suppy Chain Newo, Tanspoaion Reseach Pa E, Vo. 45, No. 1, pp , ``6
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