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This paper develops a rigorous modeling and analytical framework for the design of sustainable supply chain networks. The paper considers a firm that is engaged in determining the capacities of its various supply chain activities, that is, the manufacturing, storage, and distribution of the product to the demand locations. The firm is faced with both capital costs associated with constructing the link capacities as well as the links' operational costs. Moreover, the firm is aware of the emissions generated associated with the alternative manufacturing plants, storage facilities, and modes of transportation/shipment, which may have different levels of emissions due, for example, to distinct technologies of, respectively, production, storage, and transportation.
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