Sustainable two stage supply chain management: A quadratic optimization approach with a quadratic constraint

Designing a supply chain to comply with environmental policy requires awareness of how work and/or production methods impact the environment and what needs be done reduce those impacts make company more sustainable. This is dynamic process that occurs at both strategic operational levels. However, being environmentally friendly does not necessarily mean improving efficiency system same time. Therefore, when allocating budget in implements green paradigm, it necessary figure out properly recover costs order improve sustainability routine operations, offsetting negative logistics without compromising processes executed. In this paper, we study latter problem detail, focusing on CO2 emissions generated by transportation from suppliers sites, activities carried each plant. We do using novel mathematical model has quadratic objective function all linear constraints except one, which also quadratic, models constraint can used for investments caused increasing internal complexity created large flows nodes network. To solve model, propose multistart algorithm based successive approximations. Computational results show effectiveness our proposal.