Supply chain retrofit

Fig. 11.2 presents areas of improvement considering two boundaries for the system supply chain assessment and process assessment. The economic indicators have been classified in these two levels, because (1) some retrofit actions influence the different stakeholders and therefore the economic aspects of the supply chain should be considered (2) some retrofit actions might have little influence on the external stakeholders and therefore the economic evaluation can be focused on the economic performance of the company. 

Level III Sustainable supply chain decisions The highest level of analysis considers the retrofit designs integrated in the whole system. This level of analysis represents a holistic view and it is intended for companies aiming to achieve sustainable supply chains. This analysis requires time and it is data intensive. It covers several aspects of the process and assesses the relationship between stakeholders. Decisions wiU include conflicting aspects, which should be weighted, so that a final decision can be achieved. 

This chapter has addressed the design and retrofit of supply chains taking into account financial concerns. The proposed framework applies mixed integer modeling techniques to develop holistic mathematical models that are able to optimize the strategic operations decisions in conjunction with those of finances. 

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