A stochastic multi-objective location-allocation-routing problem for tire supply chain considering sustainability aspects and quantity discounts

Abstract

Abstract Sustainable supply chain is widely studied and investigated in various papers due to the presence of increasing environmental pollution and social risks caused by manufactories, transportation vehicles, and unused and defective products spilled into the nature; e.g. tires. This paper designs a closed loop supply chain network taking into consideration sustainability aspects and quantity discounts under uncertainty. To this end, a stochastic multi-objective optimization for supplier selection and location-allocation-routing problems is formulated. The first and second objectives of the model attempt to minimize total costs and environmental emission effects, respectively. The third objective seeks to maximize the responsiveness of the integrated network. Also, ɛ-constraint method is applied to solve the proposed framework. To verify the model, a real-world case study placed in Iran is provided and a sensitivity analysis is performed to measure the efficiency of the proposed framework. Results confirm the efficiency of the proposed approach, showing the practicability of the proposed approach for managers. Finally, future research directions are discussed.