Aggregate planning with sustainability consideration and business model assessment

Industrialization and technology have wreaked havoc on the planet during the previous century. As humans have grown conscious of the devastation they have created and the threats they have posed to future generations, sustainability has risen to the fore as a method of decreasing it. The three bottom lines (TBL) of sustainability are economic, social, and environmental. These three aspects should simultaneously involve in the sustainable decision-making process. The literature review has shown that many academic and practical studies have been done for the economic objective comprehensively, yet few studies have been done analytically considering the three bottom lines. An inclusive business model, which encourages sustainable growth, aims to derive value for low-income communities by engaging them into the value chain. Although the inclusive business model has been studied extensively by academicians and practitioners, there is a lack of systematic research on how the inclusive business model affects the companies and base of the pyramid (BOP) quantitively; therefore, many inclusive business models model implementations turned into philanthropy. The TBL accounting for the aggregate planning problem is addressed in this thesis using a methodological framework based on mathematical programming. The framework is a multi-objective mixed-integer linear programming model with the following objectives: maximizing profit, minimizing environmental damage, and maximizing social benefit. Additionally, the inclusive business model is integrated into the sustainable aggregate planning problem. The multi-objective mixed-integer model was examined in four different phases, and a realistic case study was conducted for each phase. The proposed framework demonstrates how sustainability bottom lines and business strategies can be included in the aggregate planning model. Framework proves that decision-makers will make a profit while being environmentally and socially conscious. Although companies may have to sacrifice some profits initially to enhance their social and environmental impact, their reputation and profitability will increase in the long run.