Resilience and sustainable supply chain network design by considering renewable energy

• Published in: International journal of energy research Vol. 45; no. 12; pp. 17749 - 17766
• Main Authors: Lotfi, Reza, Kargar, Bahareh, Hoseini, Seyed Hosein, Nazari, Sima, Safavi, Soroush, Weber, Gerhard‐Wilhelm
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Inc 10.10.2021; Hindawi Limited
• Subjects: Alternative energy; Components; Cost function; Demand; Design; Energy; Energy sources; Environmental management; Network design; Optimization; Renewable energy; Renewable resources; Resilience; Resource management; robust optimization; Stochasticity; supply chain network design; Supply chain sustainability; Supply chains; Sustainability; Sustainable development; Sustainable Development Goals; Upper bounds
• ISSN: 0363-907X; 1099-114X
• DOI: 10.1002/er.6943

Summary Nowadays, using renewable energy (RE) is faster growing by each country. The managerial and designer of supply chain network design (SCND) have to plan to apply RE in pillars of supply chain (SC). This research indicates resilience and sustainable SCND by considering RE (RSSCNDRE) for the first time. A two‐stage new robust stochastic optimization is embedded for RSSCNDRE. The first stage locates facility location and RE and the second stage defines flow quantity between SC components. We solve the model by GAMS‐CPLEX solver to locate components of SC and RE. Effects of changing conservative coefficient and demand are investigated and by increasing 20% for conservative coefficient, the cost function increase by 0.5%. Also, when demand is high, activating RE is economically feasible and we cannot buy and supply energy by the government power network and have to supply energy by RE. After activating RE, by increasing 20% for demand, the cost function increases by 6%. We contribute fix‐and‐optimize strategy to define the upper bound for a large‐scale problem. The proposed upper bound for the main model is less than 10% and appropriate for estimating the cost of large‐scale problems. This research suggested to equip SC by RE that SC becomes resilient against demand fluctuation and sustainable energy resource compatible with sustainable development goal (SGD7).