Optimizing environmental and economic impacts in supply chains in the FMCG industry

M.A.H. van Elzakker, L.K.K. Maia, I.E. Grossmann, E. Zondervan

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

In this paper, the environmental impacts of a supply chain of a Fast Moving Consumer Goods (FMCG) company are considered. The environmental impacts are evaluated using the Eco-indicator 99. In the optimization of the tactical planning decisions both the environmental impacts and the total costs are considered using the ε-constraint method for identifying a set of Pareto-optimal solutions. For a case study containing 10 Stock-Keeping Units (SKUs), which was optimized with a 1% optimality tolerance, the environmental impacts could be reduced by 2.9% without increasing the total costs. A further reduction of environmental impacts of up to 6.3% was possible at an increase in total costs of 5.2%. An SKU decomposition algorithm was applied to optimize a larger case study containing 100 SKUs.

Original languageEnglish
Pages (from-to)68-79
Number of pages12
JournalSustainable Production and Consumption
Volume11
DOIs
Publication statusPublished - 1 Jul 2017

Keywords

  • Environmental impact
  • Fast-moving consumer goods
  • Multi-objective optimization
  • Pareto front
  • Planning models

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