Carbon emissions and product greenness considerations in supply chain design models

In this work, we show that supply chain design models should evolve to consider the impacts of supply chain design decisions on the environmental performance of output products. We then develop a supply chain design model where a single output product is sold by the firm and the demand of this product is not an input parameter but depends on its greenness. In addition, the greenness of the output product is a decision variable that is calculated based on the carbon emissions of transportation activities. The other model decisions are mainly facility location, supplier selection, and transportation mode selection. We conduct numerical experiments on a realistic case study from the textile sector in order to show how the integration of the product greenness impacts on supply chain profit and decisions.