Environmental taxes in Supply Chain Design for recycling waterways sediments*

Waterways sediments is an example of a valuable material that can be recycled. In this study, Design Chain Network of recycling waterways sediments is presented to determine a logistic strategy for real world recycling company in France, and to analyse the influence of integration of environmental taxes on supply chain design decisions. We propose a strategic model for supply chain design with consideration of CO2 emission taxes, multi-modality and the different logistics costs. We show how these features are formulated in a mixed integer programming (MIP) model, thus capturing the role of the environmental taxes and the transportation modes in the strategic design of a supply chain. The models are solved by commercial software Cplex 10.1 and the computational results are compared. The study is followed by the analyses of the results.