A hybrid fuzzy multi-objective model for carpet production planning with reverse logistics under uncertainty

Abstract

With the presence of ever-rising customers' concerns about environmental impacts, companies are utilizing used products and recyclable materials in their supply chains to manage the products' end-of-life effectively. Effective utilization requires a proper logistical structure to flow used and recovered products throughout the supply chain. In the carpet industry, reverse logistics operations are complex and susceptible to high uncertainty affecting the collection rate, recovered items’ availability, and reverse channel capacity. Besides total cost efficiency, carpet manufacturers and other logistics actors are willing to plan the production and reverse logistics functional areas to optimize sustainability attributes. Armed with these insights, this paper addresses a multi-product, multi-site, and multi-period production planning problem integrated with reverse logistics under uncertainty. A novel fuzzy multi-objective programming model (combining possibility and flexibility) is proposed with chance constraints. Finally, new hybrid fuzzy goal programming is presented to solve the developed model. Numerical study in the carpet industry is included to show the model applicability and sensitivity.