Network Design and Algorithms for Green Supply Chain Management

  • Tarek Abdallah

Student thesis: Master's Thesis


The future of a carbon-constrained society poses a significant challenge for industries and supply chains. Supply chains, in particular, rely heavily on energy supply and freight transport. This sector faces a challenging future due to its crucial and growing role in world energy use and GHG emissions. The challenge for supply chains is that they be managed to minimize the harmful environmental impact of their procurement, production, distribution and outbound logistics. The new policy paradigm of considering the environment as a common resource where polluters need to be held accountable for their harmful activities, along with the economic attractiveness of green initiatives are changing the way companies are managing their supply chains. Environmental management and accounting are moving from the realm of corporate social responsibility into the realm of corporate financial strategy. Changing facilities from net energy users to net energy producers is a major concern of supply chain managers that are interested in greening their businesses. Building integrated photovoltaics (BIPV) is an innovative design idea to achieve energy positive buildings. Another concern is taking into account product recovery, thereby designing their supply chain in a closed-loop configuration. The efficient design of a product recovery network is one of the challenges facing the newly emerging field of reverse logistics. While traditional forward supply chains are typically optimized to minimize distribution costs, reverse logistics also take into account product recovery costs. In this thesis, we address the challenges of designing green supply chains using a mathematical programming approach. In chapter 2, we attempt to investigate the impact of implementing emissions trading requirements at the level of the firms where each company is allocated a carbon cap and is allowed to buy or sell carbon credits. In order to avoid the carbon leakage problem amongst the firms, where companies would attempt outsource their carbon intensive activities, we consider the impact of procurement on the overall emissions of the supply chain. Furthermore, we investigate the impact of feed-in-tariff schemes and emissions trading on the supply chain facilities to mount rooftop PVs to minimize their energy consumption emissions. Chapter 3, introduces the uncapacitated closed-loop location inventory model (UCLLI), incorporating inventory decisions into location models for the forward and reverse supply chains simultaneously. The model is formulated as a non-linear mixed integer program, and an exact two-phase Lagrangian relaxation is presented to solve the problem.
Date of Award2011
Original languageAmerican English
SupervisorAli Diabat (Supervisor)


  • Strategic Planning
  • Business Logistics

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