Multi Criteria Simulation Model for Lead Times, Costs and CO2 Emissions in a Low-carbon Supply Chain Network

Recently founded manufacturing companies have been increasing overseas production in order to decrease local production cost, especially in East and Southeast Asian countries such as China and Malaysia, and a global supply chain network is now being constructed not only in developed but also in emerging countries. Furthermore, in order to prevent global warming, a low-carbon supply chain has been required to reduce CO2 emissions in materials/parts production. However, the overseas production essentially brings a longer logistics lead time, and emerging countries are more sensitive in considering uncertainties such as fluctuating lead time. Therefore, the low-carbon supply chain should be constructed and evaluated by multi criteria for the lead time, costs and CO2 Emissions. This study models a low-carbon supply chain network between Malaysia, China and Japan on a discrete event simulation, evaluates multi criteria decisions for the lead times, costs and CO2 emissions, and analyzes the effect of the fluctuating lead time.