A new multi-objective stochastic model for a forward/reverse logistic network design with responsiveness and quality level

Abstract

Logistic network design has an important and strategic platform in an efficient and effective supply chain management, and usually involves multiple and conflicting goals, such as cost/profit, resource balance, customer responsiveness, quality, and the like. Besides, due to the implementation of government legislation, environmental concern, social responsibility and customer awareness, companies have been forced by customers not only to supply environmentally amicable products but also to be responsible for the returned products. Hence, this paper presents a stochastic multi-objective model for forward/reverse logistic network design under a uncertain environment including three echelons in forward direction (i.e., suppliers, plants, and distribution centers) and two echelons in backward direction (i.e., collection centers and disposal centers). We demonstrate a method to evaluate the systematic supply chain configuration maximizing the profit, customer responsiveness, and quality as objectives of the logistic network. The set of Pareto optimal solutions is obtained and also financial risk relevant to them is computed in order to show the tradeoff between objectives. The results give important insight for fostering the decision making process.