Goal programming model for production-distribution planning by considering carbon emission

Abstract

Companies must manage their supply chains effectively under changing conditions in marketplace in order to be successful against their competitors. As a result of some regulations in recent years, companies are forced to consider the damage they cause to the environment by their supply chain activities. In this paper, a production-distribution problem, which concerns economic and environmental effects, is considered. A multi-product, multi-stage productiondistribution network with different transportation alternatives is modelled in the problem. A goal programming model is proposed to support planning decisions of this production-distribution network by considering the profit of network activities and the carbon emission value caused by material and product transportation. A randomly generated set of test data was used to evaluate the effectiveness of the proposed model. The results show that the proposed model can be used as an effective tool for environmentally friendly production-distribution planning.