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A multi-objective robust optimization model for green closed-loop supply chain network design
Closed-loop supply chain
Multi-objective mixed integer programming model
|Issue Date:||2022-05-02 15:00:26 (UTC+8)|
In order to keep a company’s competitive capability, effective integrated management of the supply chain are important recently. Due to the topics such as the environmental issues, the governments’ legislation, natural resource limitation and circular economy having got consumers’s awareness, the related researches of the closed-loop supply chain which integrate the forward and reverse supply chain are increasingly growing. Companies not only have to meet the environmental regulations, but also have to sustain high quality of the supply chain operation as a means to stay competitive advantage and profit capability.
This study proposes a multi-objective mixed integer programming model for an integrated green closed-loop supply chain network designed to maximize profit, amicable production level (environmentally friendly materials and clean technology usage), and quality level. A scenario‐based robust optimization method is used to deal with uncertain parameters such as the demand of new products, the return rates of returned products and the sale prices of remanufactured products.
The proposed model is applied to a real industry case example of a manufacturing company to illustrate the applicability of the proposed model. The result shows a robust optimal resource allocation solution that considers multiple scenarios. This study can be a reference for closed‐loop supply chain related academic research and also can be used to guide the development of a green closed‐loop supply chain model for better decision making.
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