Optimizing Facility Location Decisions Considering Health Impact on Local Population

Minimizing environmental impacts due to logistics activities have long been recognized as part of a way to promote a sustainable supply chain. Facility location decisions play a critical role in strategic design of supply chain and hence have a long-term impact on its cost and environmental performance. In this study, Operations research and Life-cycle impact assessment techniques are used to estimate the burden on local population's health caused by facility location decisions. Specifically, our primary goal is to minimize the impacts on local population's health quantified in terms of Disability Adjusted Life Year (DALY). A mixed integer linear programming model is developed based on a case study located in Can Tho city, Vietnam. Geographic information system (GIS) mapping software is used to estimate the number of affected population. The results of the study show that population density along different parts of transportation routes is the main factor influencing the selection of optimal solutions.