A bi-objective mathematical model for designing a closed-loop supply chain network (Case study: Tire manufacturing company)

Abstract

The failing to reuse of defective goods leads to environmental pollution in addition to increased cost and reduced profits of the chain. Hence, proposing a plan for reuse of defective goods can have a great impact on the economic and environmental performance of the chain. In this regard, the design of reverse supply chain is a solution to this problem. To this end, in this paper, a bi-objective model is proposed for the design of a closed-loop supply chain network by taking into account supplier selection and order allocation. In the proposed model of locating the centres, discounts on purchases from suppliers and product storage by customers are considered, and then the LP metric approach is used to solve the bi-objective model. At the end, the model is implemented in a tyre manufacturing company in order to evaluate the efficiency and validity of the proposed model. The obtained results confirm the applicability and accuracy of the proposed approach.