Integrating economic, environmental, and social concerns into the design and planning of supply chains using monetization strategies

The growing concerns with sustainable aspects have influenced supply chain decision-makers to incorporate them into their efficient management. Thus, the decision-making process, which is traditionally based on economic profit, today also aims to take into account the environmental and social impacts of the supply chain so that decision-making is completer and more efficient, although complex. This work contributes to help decision-makers to take an informed decision and develops a decision support tool based on a mixed integer linear programming (MILP) model for the design and planning of supply chain that accounts for economic, environmental, and social performances in the same monetary unit. Environmental performance is considered in monetary units using the life cycle assessment methodology by applying the Environmental Priorities Strategies (EPS) as the life cycle assessment method. Social performance is measured through a social monetization approach based on job creation indicator (translated into a monetary units). In addition, this paper accounts for uncertainty in products’ demand. Conclusions are drawn on how monetization can be a useful tool to support decision-making process and support supply chain’s sustainable performances. A real-based case study is solved showing the applicability of the tool.