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Sustainable supply chain network design: An application to the wine industry in Southern Portugal

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  • Rui Fragoso
  • José Rui Figueira

Abstract

A case study of the wine industry in southern Portugal was conducted to provide a balanced approach to sustainable supply chain network design. A multi-objective model was developed integrating economic, environmental and social dimensions. The economic objectives include profit and revenue maximisation of the focal winery and minimisation of supply chain costs. The environmental objectives comprise minimisation of greenhouse gas emissions and of water consumption in vineyards and winery. The social dimension encompasses maximising employment and the number of suppliers and facilities. The model optimises the capacity of supply chain facilities, the production rate of wine and its combination, the amount of materials and wine that are moved through the supply chain, and selects suppliers. An achievement scalarizing functions approach was applied to the model, with some reference points projected on Pareto frontiers. The results showed that the current supply chain can be reconfigured and become more sustainable.

Suggested Citation

  • Rui Fragoso & José Rui Figueira, 2021. "Sustainable supply chain network design: An application to the wine industry in Southern Portugal," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(6), pages 1236-1251, June.
    • Handle: RePEc:taf:tjorxx:v:72:y:2021:i:6:p:1236-1251
    DOI: 10.1080/01605682.2020.1718015
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    Cited by:

    1. Asrat Mekonnen Gobachew & Hans-Dietrich Haasis, 2023. "Scenario-Based Optimization of Supply Chain Performance under Demand Uncertainty," Sustainability, MDPI, vol. 15(13), pages 1-32, July.
    2. Qiuyun Zhu & Xiaoyang Zhou & Aijun Liu & Chong Gao & Lei Xu & Fan Zhao & Ding Zhang & Benjamin Lev, 2022. "Equilibrium Optimization with Multi-Energy-Efficiency-Grade Products: Government and Market Perspective," Energies, MDPI, vol. 15(19), pages 1-23, October.
    3. Hamed Soleimani & Prem Chhetri & Amir M. Fathollahi-Fard & S. M. J. Mirzapour Al-e-Hashem & Shahrooz Shahparvari, 2022. "Sustainable closed-loop supply chain with energy efficiency: Lagrangian relaxation, reformulations and heuristics," Annals of Operations Research, Springer, vol. 318(1), pages 531-556, November.
    4. Eirini Aivazidou & Dimitrios Aidonis & Naoum Tsolakis & Charisios Achillas & Dimitrios Vlachos, 2022. "Wine Supply Chain Network Configuration under a Water Footprint Cap," Sustainability, MDPI, vol. 14(15), pages 1-16, August.
    5. Batool Madani & Afef Saihi & Akmal Abdelfatah, 2024. "A Systematic Review of Sustainable Supply Chain Network Design: Optimization Approaches and Research Trends," Sustainability, MDPI, vol. 16(8), pages 1-33, April.

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