A multi-objective simulation-based decision support tool for wine supply chain design and risk management under sustainability goals

Abstract

Multiple studies have addressed the problem of Supply Chain Network Design (SCND) with sustainability concerns, which, by itself, is a challenging problem. However, when adding risk management, the problem becomes even more complex. It is steered by this challenge that the purpose of the paper is twofold. First, it proposes a Simulation-Based Decision Support System (SBDSS) for a real case study of a Portuguese wine SCND problem. The tool consists of a simulation model that mimics the flows that occur in the real system, thus being able to model the operations described in the data, as well as combine this with risk situations. Second, it analyzes different Supply Chain (SC) configurations under risk situations and sustainability objectives. To do this, we also propose an approach that combines multi-objective optimization with simulation. The results suggest that the proposed approach is able to simulate and determine a set of Pareto-front solutions that consider the three dimensions of the sustainable SCND, as well as risk situations. Furthermore, the implications that several parameters have on the sustainability of the designed SCs were assessed, as well as the impacts that the considered risks have on the performance of SCs. In particular, it was found that transportation risks impacted considerably more the performance of the modeled wine SC than the risks on the prices of energy and raw materials.

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