Applying mixed integer programming for green supply chain management

Abstract

This paper aims to guide those in supply chain management who make decisions on selecting factories, transportation modes, and the number of products to be manufactured. Solutions can be found through development of an optimisation model, using mixed-integer programming. Because green supply chain issues have become important, and new legislation has to be taken into account, carbon emissions costs must be included in the total costs of the supply chain, as in the optimisation model presented, which then has the ability to minimise total costs and to provide solutions that are both cost-effective and environmentally friendly.