A Case Analysis of a Sustainable Food Supply Chain Distribution System–A Multi-Objective Approach
CHALLENGE - Food industry players are faced with environmentally conscience consumers and pressure to become sustainable in their supply chain. Distribution needs to meet the environmental standards by reducing CO2 during transportation while still being economically competitive and cost effective.
SOLUTION - A multi-attribute decision-making approach, TOPSIS, has been used to rank the realistic feasible transportation routes resulting from the trade-offs between total costs and CO2 emissions. In addition to geographical mapping of sustainable transportation routes, the decision maker is also presented with a number of alternative analyzed scenarios which forcibly open closed distribution routes to build resiliency into the solution approach. In terms of model performance, three separate GA based optimizers have been evaluated in modeFRONTIER.
BENEFITS - In the case presented, NSGA-II was found to outperform its counterparts of MOGA-II and HYBRID. From these outputs a number of transportation routes are obtained for the dairy manufacturer. The sustainable distribution process presented enables the supply chain decision maker to reduce the total carbon emission from the transportation involved in the entire distribution process while simultaneously optimizing total costs.