Modeling risks in configuring a green supply chain for new product development (case study: fast-moving consumer goods)

Today, companies operate in a very competitive environment, so developing a new product to respond to customer needs and efforts to reduce environmental pollution can be an advantage to them. On the other hand, the development of the new product will re-configure the supply chain, requiring strategic, technical and operational decisions. In addition, the development of a new product has many risks that reducing them by using appropriate strategies can increase the chance of success in introducing a product in the market. In this paper, a multi-echelon multi-sources green supply chain is considered that will produce a new product. Initially, different risks of new product development are identified, and then we are looking for the best risk reduction strategies. Using a new mathematical model, the best risk response strategies will be taken, as well as technical, strategic and operational decisions. The three objective functions include economic criteria, reduction of pollution and the risk reduction is supposed. The mathematical model is a mixed integer linear programming, MILP, that parameters are assumed to be deterministic. The model is solved using GAMS software. The results show that the development of a new product and the selection of the risk reduction strategies affect the reconfiguration of the green supply chain.