Sustainable supply chain design using a multi-objective linear optimization approach for solid bulk products

Abstract

This paper proposes a multi-objective optimization model for designing a sustainable logistics system that determines the ideal logistic flow of an ultrafine mineral residue product, tailings, from Brucutu/MG to multiple destinations over a capable multimodal system. These tailings are extracted from iron ore and can be used as a partial substitute for raw materials in construction materials. This substitution can help avoid dangerous dams of iron ore tailings and save natural resources and greenhouse gas emissions in the civil construction chain. However, the distribution incurs logistical costs and resulting socio-environmental impacts. Therefore, logistics plays a fundamental role in making this substitution economically viable. The proposed model aims to maximize total profit while minimizing negative socio-environmental impacts and maximizing the positives. The resulting ideal multimodal logistic system is obtained based on sustainable pillars, demonstrating that a small decrease in profits can yield significant reductions in negative impacts and increases in positive externalities.