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Integrating life cycle assessment into supply chain optimization.

Selin Hülagü1, Wout Dullaert1, A Sena Eruguz1

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Summary

This study introduces a Supply Chain Life Cycle Optimization (SCLCO) model, integrating Supply Chain Optimization (SCO) and Life Cycle Assessment (LCA). SCLCO enables simultaneous optimization for economic, environmental, and social sustainability, improving supply chain efficiency and impact assessment.

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Area of Science:

  • Operations Research
  • Environmental Science
  • Sustainability Science

Background:

  • Supply Chain Optimization (SCO) and Life Cycle Assessment (LCA) are critical for sustainable and efficient supply chains.
  • Current approaches often treat SCO and LCA separately, causing data inconsistencies and scope limitations.
  • A unified framework is needed to bridge the gap between SCO and LCA methodologies.

Purpose of the Study:

  • To develop a novel Supply Chain Life Cycle Optimization (SCLCO) model that integrates SCO and LCA.
  • To create a generalized formulation that harmonizes principles, terminology, and notation for both SCO and LCA communities.
  • To enable the consideration of environmental, economic, and social sustainability pillars simultaneously.

Main Methods:

  • Developed an SCLCO model based on LCA data structures.
  • Incorporated multi-time period, closed-loop SCO decisions, including reverse logistics and inventory management.
  • Utilized computational experiments on existing SCO models to validate the SCLCO approach.

Main Results:

  • The SCLCO model effectively integrates SCO and LCA, addressing limitations of sequential approaches.
  • Computational experiments demonstrated the model's capability to provide valuable insights for practitioners and researchers.
  • Simultaneous execution within SCLCO minimizes overlooked decision impacts and enhances data transfer from LCA databases.

Conclusions:

  • The SCLCO model offers a unified approach to optimizing supply chains for economic, environmental, and social performance.
  • This integrated methodology facilitates more robust and consistent decision-making in supply chain management.
  • SCLCO bridges the gap between SCO and LCA, promoting holistic supply chain sustainability.