Sustainable Supply Chain Management and Strategic Decision Model Based on Social Costs Caused by Environmental Pollution

Document Type: Research Paper

Authors

1 Department of Industrial Engineering, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Department of Industrial Engineering, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

The forthcoming study provides a strategic decision making model that addresses the operational and social costs of environmental pollution resulting from the operation of such a supply chain network for sustainable supply chain management. Sustainable management refers to lower environmental and social risks in business. The model examines carbon dioxide emissions and operating costs under different San Diego models in a dairy supply chain. The results show that low carbon dioxide emissions are due to their high social costs, as well as laws that Compelled companies to bear the social costs of environmental pollution caused by their economic activities will be an effective way to reduce emissions. It was found that total carbon dioxide emissions would decrease with increasing social spending on carbon dioxide emissions. The results showed that if companies are forced to pay social costs for carbon dioxide emissions from their supply chain operations, decision makers of these companies will find optimal strategies for exchanging transaction costs and carbon dioxide emissions Will create. Therefore, the decision makers of the companies will choose plants that emit less carbon dioxide gas, even if those factories have higher production costs.

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Main Subjects


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