A multi-objective stochastic model for a reverse logistics supply chain design with environmental considerations

Abstract

Some electronic devices have a short lifetime, and variety-seeking and consumerism are increasingly growing in today’s societies. Moreover, electronic wastes contain precious substances such as gold, silver, copper, and aluminum. The proper disposal and processing of them by recycling offer considerable advantages to the environment, given the hazardous natures of such devices’ substances. The proposed reverse logistics with waste electrical and electronic equipment (WEEE) is an important task considered by researchers, the use of which offers economic benefits and reduces the environmental impacts of wastes. The present study models the electrical and electronic equipment (EEE) reverse logistics process as a bi-objective mixed-integer programming model under uncertainties. The mathematical model investigates two objectives: an economic objective and an environmental objective. The first is minimizing cost, while the second is maximizing the environmental score by reverse logistics processes in recovering and recycling. The parameters of demand and WEEE return rate which is obtained from the customer were considered as two uncertain parameters. A scenario-based stochastic programming (SSP) approach is applied to deal with the uncertainties. A case study of an electronic equipment manufacturer in Esfahan, Iran was included. The model was solved by a nominal approach and an SSP approach via the epsilon-constraint (EC) and augmented epsilon-constraint (AEC) methods to obtain optimal Pareto solutions and compare the methods. Finally, the optimal results of the two approaches were evaluated. The results indicated that the SSP approach using the AEC method had better outcomes.