Global Supply Chain Network Design for Lower Material-based CO₂ Emissions and Costs between Developed and Emerging Countries

Abstract

The aim of this study is to design a global supply chain network by selecting suppliers and determining locations for assembly factories while satisfying the demands of different markets for finished assembly products not only in consideration of parts procurement, production, and logistics costs, but also material-based CO₂ emissions. First, the global supply chain network is modeled with material-based CO₂ emissions and the costs, and is formulated as a mixed integer programming (MIP) problem. Second, numerical experiments are conducted where the parts and the products with material-based CO₂ emissions and costs based on a bill of materials are transported between two countries. Additionally, the numerical experiment is shown by varying the target reduction ratio of the environmental impact. Finally, the results of the proposed design method are compared with a previous study, and the effect of the facility cost is discussed.