Developing a Bi-Objective Model of the Closed-Loop Supply Chain Network design compatible with environment

Abstract

Closed-loop supply chain network (CLSCN) design aims at incorporating environmental considerations into the traditional supply chain design by including recycling, disassembly and reuse activities. In a CLSCN, the environmental considerations can also be facilitated by resorting to environmentally friendly materials and enhancing product reuse through the design of an appropriate product recovery, disassembly, and refurbishing network. In this design process, tradeoffs must be made to accommodate the profit and greenness maximization objectives. In this paper, a bi-objective binary integer programming model is developed and solved for a forward/reverse logistic network including three echelons in forward direction (namely, suppliers, assembly centers and customer zones) and two echelons in the reverse direction (namely, disassembly and e-recycling centers). A set of Pareto optimal solutions is obtained to show the trade-off between the profit and the greenness objectives. Some useful managerial insights are developed through various experiments.