Advanced Optimization of Energy production Distribution System Integrated with Sustainable Supply Chain Networks

Abstract

This study establishes a Mixed Integer Linear Programming (MILP) formulation that endeavors to streamline the integration of the supply chain with the master power network and, in particular, seeks to generate, manage, and disseminate products through the supply chain. The objective function will be to minimize the cost of the network, which comprises the fixed and variable expenses of the supply chain and its coordination with the main power network. Moreover, the model integrates occupational damage costs, the economic value of providing job opportunities, and emissions, considering the effects of carbon tax policies. The findings state that the selected carbon taxation policy has a direct effect on the overall cost structure and operational planning in the network, highlighting the role of policy issues in pursuing cost-effective and sustainable supply chain integration.