Optimal Products Portfolio Design of a Sustainable Supply Chain Using Different Recipes for Dairy Products Production

This study proposes a deterministic optimization approach for products portfolio design of a Sustainable Supply Chain (SSC) comprising suppliers, plants and markets for production of dairy products using different recipes. It includes three interconnected models of the recipes used for the production of the dairy products, the SC design and the SC environmental impact. The latter is assessed in terms of wastewater and CO2 emissions associated with the dairy production and the transportation. The models are included in an optimization working frame along environmental and economic criteria. The proposed approach has been implemented on a case study from Bulgaria – for production of two types of curd at two recipes using two types of milk. Optimization problems have been formulated in terms of MINLP. They are solved at different imposed environmental pollution taxes on the dairies regarding both wastewater and CO2 emissions. The optimal SC products portfolio for the production of the planned products is obtained satisfying the best trade-off between environmental and economic criteria.