Journal of Industrial Engineering Research in  Production Systems

Journal of Industrial Engineering Research in Production Systems

Designing a Sustainable and Resilient Supply Chain for Green Chemical Production under Supplier Disruption Uncertainty: A Two-Stage Stochastic Approach

Document Type : Research Paper

Authors
Department of Industrial Engineering, Faculty of Engineering, Yazd University, Yazd, Iran.
Abstract
Today, the transition toward sustainable production of chemicals from biomass resources faces multiple challenges, including the vulnerability of supply chains to unforeseen disruptions. This study proposes a two-stage stochastic model aimed at designing a supply chain network that is simultaneously sustainable and resilient. In the model, the risk of disruption in the capacity of primary suppliers is managed by introducing secondary suppliers as a strategic approach to enhance resilience. The proposed model pursues two conflicting objectives: minimizing the total expected system costs and minimizing the total expected greenhouse gas emissions. First-stage decisions involve the location and capacity allocation of facilities as well as contracting with backup suppliers, while second-stage decisions determine operational flows after the occurrence of each disruption scenario. The results demonstrate that this approach provides a powerful framework for strategic decision-making, improving the trade-off between investment in resilience and the risks arising from uncertainty.
Keywords
Subjects

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