E-supply chain management is an emerging area of interest as companies begin to explore the Internet's potential to restructure supply chain relationships. The environmental impact of e-supply chain management is a critical issue towards sustainability. This thesis discusses and models an integrated e-supply chain network accounting for material and information flows throughout the supply chain in order to analyze the environmental implications and tradeoffis with other system characteristics. The network structure has complex interactions between various entities. In order to understand and analyze dynamic performance, a discrete-event simulation approach is utilized. An integrated tool was developed using the Arena simulation software to simulate the e-business supply chain including lifecycle stages. The modules capture general supply chain process and ebusiness concepts. Consequently, it can be used in wide range of applications. A case study based upon a desktop computer was modeled to illustrate the application of the simulation model, evaluate environmental performance and examine the stochastic behavior of the network.