A novel multi-objective scenario-based optimization model for sustainable reverse logistics supply chain network redesign considering facility reconstruction

Abstract

With the increase of concern from environmental pollution and waste of resources, manufacturing firms have realized that the recovery of used products becomes an environment-friendly way to support sustainable development. However, many enterprises face a problem that is how to implement the recovery of used products into their existing forward logistics networks. In this case, it is necessary to redesign a novel sustainable reverse logistics supply chain network by reconstructing the existing facilities into hybrid processing facilities. To handle the foregoing problem, a multi-objective scenario-based optimization model is proposed. It aims to maximize the expected total monetary profits, minimize the expected total carbon emission costs, and maximize the expected total created job opportunities. To solve the proposed model, we develop a method to linearize the model and then apply the weighted-sum method to reformulate it as a single-objective one. In addition to the weighted-sum method, an augmented E-constraint method is used to obtain a set of efficient Pareto-optimal solutions and the trade-off among three conflicting objectives is presented. Finally, several numerical instances from a tire supply chain are performed to validate the proposed model and some managerial implications are also concluded.