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# 2. Modeling

Parameter :

Parameter :

Parameter :

Parameter :

Setup Cost for Facility j

Decision Variable : Decision Variable :

Decision Variable :

Environmental Investment in Facility j Handling cost for product p in facility j

Transport cost for product p from facility i to j

Decision Variable :

1, if facility j is open

the environment protection level in facility j

flow of product p from node i to node j

flow of product p from node i to node j

### Cost

Parameter :

Parameter :

CO2 emission in facility j for handling product p

Decision Variable :

Environmental Investment in Facility j

Decision Variable :

### Emission=

flow of product p from node i to node j

the environment protection level in facility j

• # 2. Solving Approach

Parameter :

Parameter :

Parameter :

Transport cost for product p from facility i to j
Setup Cost for Facility j
Handling cost for product p in facility j

Decision Variable :

Decision Variable :

Decision Variable :

flow of product p from node i to node j

1, if environment protection level l is selected

flow of product p from node i to node j

### Cost

Parameter :

Fixed environmental investment and per unit

Parameter :

Environmental influence in facility j under l environmental level
Environmental Investment in Facility j

Decision Variable :

Decision Variable :

### Emission=

Amount of product p handling in facility j unt\der

the environment protection level in facility j

l environmental protection level

# (1/3)

## If the Capacity Ratio is increase, it will effect to decrease Cost and CO2 Emission.

### demand increases, the network provides more flexibility to conduct logistic cost and CO2 Emission in Transportation Process.

Capacity Ratio = 1

# (2/3)

## supplier. Why larger supply range exhibit lower total cost and lower CO2 Emission? Because if the company has close supplier and rich facilities, we can reduce C02 Emission and transportation cost.

Facility
X
Facility
X+2
Supplier
Supply Range = [1,1.2]  Total Cost =7300, CO 2 = 2310
Supply Range = [1.5,2]  Total Cost = 7180, CO 2 = 2280
Facility
Supplier
X
X-2
Facility
Supplier

Before : Total Cost and CO2 Emission 2x+2

After : Total Cost and CO2 Emission 2x-2

# 2. Modeling

Parameter :

Parameter :

Parameter :

Parameter :

Setup Cost for Facility j

Decision Variable : Decision Variable :

Decision Variable :

Environmental Investment in Facility j Handling cost for product p in facility j

Transport cost for product p from facility i to j

Decision Variable :

1, if facility j is open

the environment protection level in facility j

flow of product p from node i to node j

flow of product p from node i to node j

### Cost

Parameter :

Parameter :

CO2 emission in facility j for handling product p

Decision Variable :

Environmental Investment in Facility j

Decision Variable :

### Emission=

flow of product p from node i to node j

the environment protection level in facility j

• # 2. Solving Approach

Parameter :

Parameter :

Parameter :

Transport cost for product p from facility i to j
Setup Cost for Facility j
Handling cost for product p in facility j

Decision Variable :

Decision Variable :

Decision Variable :

flow of product p from node i to node j

1, if environment protection level l is selected

flow of product p from node i to node j

### Cost

Parameter :

Parameter :

CO2 emission in facility j for handling product p
Environmental Investment in Facility j

Decision Variable :

Decision Variable :

### Emission=

flow of product p from node i to node j

the environment protection level in facility j