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1358. Optimal design of socially sustainable raw material supply chains
Invited abstract in session MB-24: Raw Material Supply Chains, stream Sustainable Supply Chains.
Monday, 10:30-12:00Room: 83 (building: 116)
Authors (first author is the speaker)
| 1. | Lea Franze
|
| Chair of Production and Logistics Management, FernUniversität in Hagen | |
| 2. | Karsten Kieckhäfer
|
| Chair of Production and Logistics Management, FernUniversität in Hagen | |
| 3. | Bruna Mota
|
| CEG-IST, Instituto Superior Técnico | |
| 4. | Ana Barbosa-Povoa
|
| Departamento de Engenharia e Gestão, Instituto Superior Técnico, Universidade de Lisboa |
Abstract
Driven by due diligence requirements, social sustainability aspects receive more attention in global supply chains. In the automotive industry, e.g., companies search for sustainable supply sources, engage in supplier development, or invest in raw material mining projects to meet social standards. In current research on strategic network planning, however, social sustainability is rarely studied, and often approached in a simplified manner. To address this gap, we develop a novel network planning approach that combines social life cycle assessment, activity analysis, and mixed-integer linear programming. The model particularly decides how much raw material to source from multiple sites, which may operate at different levels of costs and social risks. To meet certain social standards and fulfill demand, different measures are available: commitment to long-term contracts with suppliers, investment in mining projects, and implementation of social development measures. The costs associated with these decisions are minimized in an economic objective function, while social risk is limited by additional constraints. The approach is applied to raw material extraction in the supply chain of lithium-ion batteries for electric vehicles. The analyses show the trade-offs between the sourcing decisions to meet social standards. In cobalt mining, e.g., investing in mining projects in Australia can reduce the social risks associated with sourcing cobalt from long-term contracts in the Congo.
Keywords
- OR in Sustainability
- Supply Chain Management
- Network Design
Status: accepted
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