Location Optimization Strategies for Corn Production and Distribution towards Sustainable Green Supply Chain

Labiba Noshin Asha, Lucy G. Aragon, Arup Dey and Nita Yodo ()
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Labiba Noshin Asha: Department of Industrial Engineering, University of Arkansas, Fayetteville, AR 72701, USA
Lucy G. Aragon: Department of Engineering, Pontificia Universidad Catolica del Peru, San Miguel, Lima 15088, Peru
Arup Dey: Department of Computer Science and Engineering Technology, Valdosta State University, Valdosta, GA 31698, USA
Nita Yodo: Department of Industrial and Manufacturing Engineering, North Dakota State University, Fargo, ND 58102, USA

Logistics, 2024, vol. 8, issue 3, 1-16

Abstract: Background: The corn supply chain is vital for food security and economic stability regionally and globally. This study integrates sustainable supply chain management with location optimization to address trade-offs from climate change, economic viability, and environmental impact while assuming the constant social obligation inherent in the supply chain structure. Methods: This study employs a mixed-integer programming (MIP) framework to optimize facility locations in North Dakota, including corn production zones as suppliers and ethanol plants as consumers. Primary objectives include cost minimization and greenhouse gas reduction, enabling the prioritization of economic or environmental goals as per organizational strategies and regulations. This approach ultimately maximizes resource utilization by ensuring efficient production and distribution practices. Results: The case study results highlight the optimal selection of 20 out of 30 corn production zones to meet statewide ethanol plant demand efficiently. Using compressed natural gas (CNG) instead of diesel could potentially save USD 2 million annually and cut carbon emissions by up to 1148 thousand tons per year, demonstrating meaningful progress toward economic and environmental sustainability within the supply network. Conclusions: The presented work offers a systematic methodology for designing sustainable supply chains for various agricultural products, aligning with the broader goal of promoting sustainability and resilience for efficient agricultural production and distribution systems.

Keywords: green supply chain; mixed-integer programming; location optimization; agricultural operational; sustainability (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
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