A vertically and horizontally integrated synergistic supply chain network design

The study introduces a novel Supply Chain Network Design (SCND) framework that integrates both Vertical and Horizontal SYnergies (VHSY). This approach is designed to evaluate performance with respect to cost efficiency and CO₂ emission reduction. Furthermore, the research advocates adopting synergistic policies to address antifragility, agility, and sustainability, supported by risk and robustness techniques. Within this framework, the resilience policy emphasises adjusting facility capacities according to scenario-specific conditions. Sustainability policy addresses environmental issues (e.g. CO2 emissions). The agility and antifragility policies address adaptive flow constraints, allowing the required level of demand satisfaction to adjust to uncertain operating conditions. The VH approach compares facility proximity in the industrial zone with that of facilities located in other countries. This study demonstrates the significant advantages of the VHSYSCND model over conventional approaches, achieving reductions in cost and emissions. Sensitivity analyses reveal key trade-offs: higher conservatism slightly increases costs and emissions, whereas greater agility substantially increases both. Conversely, increased availability significantly reduces costs and emissions by reducing the need for new facilities. Finally, model scalability is confirmed, though larger instances increase computational time, cost, and emissions due to the problem's NP-hard nature. Overall, the VHSY framework effectively optimises for both economic and environmental performance.