A carbon sensitive supply chain network problem with green procurement

Abstract

Faced with growing concerns over the environmental impact of human activities and increasing regulatory pressure, companies are beginning to recognize the importance of greening their supply chains by minimizing carbon emissions of their activities. An original equipment manufacturer that is concerned with minimizing the environmental impact of its activities should choose its suppliers based on the trade off between costs and respective emissions. In this paper, we develop an MIP model for the carbon-sensitive supply chain that minimizes emissions throughout the supply chain by taking into consideration green procurement. A sensitivity analysis of our model and results on several small problems are included.