A multi-objective robust optimization to design a sustainable dairy supply chain under uncertain product demands, economic and social consideration. A real case study from Bulgaria

Abstract

The operation of dairy supply chains (DSCs) is associated with the generation of significant amounts of wastewater pollutants and CO2 emissions. The presence of uncertainty regarding various parameters of the considered DSCs has an additional impact on their sustainability. The most efficient way to improve the sustainability of DSCs is by applying mathematical modeling approaches for optimal design of sustainable DSCs operating under uncertain conditions. The present study proposes an optimal model for design of a sustainable DSC for the production of two types of dairy products with a technology selection, which includes economic, environmental and social impact models, as well as dairy production model. The optimization model takes into account uncertainty in products demands, raw materials and products prices and social costs. The effectiveness of the proposed approach is proved in a real case of a DSC from Bulgaria, which includes suppliers of two types of milk and dairy plants for the production of two types of dairy products and markets. The obtained optimal values of the economic, environmental and social costs show that the application of the optimization approach results in sustainable solutions that do not significantly change with an increase in the uncertainty level of consideration of the uncertain parameters.