Supply chain design and planning accounting for the Triple Bottom Line

In this work, a multi-objective mixed integer linear programming (moMILP) model is presented for the design and planning of sustainable closed loop supply chains. It includes strategic decisions such as facility location, definition of the transportation network, technology selection and allocation, as well as tactical decisions such as supply planning, that satisfy the demand. The first objective accounts for the economical pillar of sustainability considering profit maximization. The profit is measured through net present value (NPV) at the end of the planning horizon, accounting for costs with facilities, transportation, raw material acquisition, production and remanufacturing, inventory, product recovery and human resources. The second objective is the environmental impact minimization, evaluating the environmental pillar of sustainability. It is measured using the Life Cycle Assessment (LCA) methodology ReCiPe, applied to the main activities of the supply chain: production, transportation and facility installation. Both unimodal and intermodal transportation are considered. The third objective accounts for the social pillar of sustainability. This is measured through socio-economic indicators applied by the European Union to its Sustainable Development Strategy. An approximation of the Pareto front is obtained through the augmented Ɛ-constraint method that allows to address the trade-offs inherent to these conflicting objectives. The applicability of the model is demonstrated through a representative supply chain case study showing how this tool may help companies to adjust to the new sustainability context