A multiobjective optimization model for sustainable reverse logistics in Indian E-commerce market

Abstract

A cleaner and sustainable environment is becoming a topmost priority for both owners and stakeholders involved in businesses. It could be achieved by adopting better sustainable practices like reduction in waste through process of recycling, recovery and remanufacturing which helps to minimize both the cost and environmental losses. With a recent surge in E-commerce market and online shopping in India there is a need for a more efficient, sustainable and reliable reverse logistics design by including cost, environmental and social factors into consideration. With the factors considered above this paper proposes a multi-objective logistics network model for the return products specifically pertaining to the Indian E-commerce market. The components of this multi-echelon supply chain considered are Customer Markets, Warehouses, Delivery Hubs, Landfills, Incineration Centres and Recycling Centres. The multi-objective optimization is done on the three fronts of sustainability, namely, economical, represented by cost, environmental, represented by environmental impact of different process, and social, which is represented by work days created and lost due to harms at work. Different technologies are considered in delivery hubs and mother warehouse which could result in a more efficient way of transferring and processing products. Weighted goal programming (WGP) technique is used by weighing different objectives to minimize cost, environment impact and maximize the social responsibility. Finally, - model is validated with a numerical example based on an online retail selling clothes. This study will help the managers in deciding the number of facility stores and warehouses needed to open and operate, technology to be adopted for a more efficient way of transferring and processing products.