Creating a green supply chain: A simulation and modeling approach

Abstract

This paper presents a case study of a supply chain which is concerned with the distribution of aluminium metal, starting from raw material from a Metal Supplier to a Casting Plant, billets from the Casting Plant to the Component Producer, and finally, die-cast components from the Component Producer to the Market. The paper creates a green supply chain by integrating the concerns of transport pollution, marketing costs, time to market, recycling of scrap metal and energy conservation. Simulation and modelling tools are introduced to aid in the decision making process of distance selections and choices of transportation in the case study. Based on a series of user input selections, the simulation results are used to determine a range of optimal plant locations that will balance economical benefits (highest scrap values, least total costs, etc.) as well as environmental stewardship (least pollution). © 2006 Springer-Verlag London Limited.