An eco-friendly closed loop supply chain network with multi-facility allocated centralized depots for bidirectional flow in a battery manufacturing industry

Abstract

PurposeDue to the economic benefits and environmental awareness, most of the battery manufacturing industries in India are interested to redesign their existing supply chain network or to incorporate the effective closed loop supply chain network (CLSCN). The purpose of this paper is to develop CLSCN model with eco-friendly distribution network and also enhance recycling to utilize recycled lead for new battery production. The existing CLSCN model of a battery manufacturing industry considered for case study is customized for attaining economic benefit and environmental safety. Hence, single objective, multi-echelon, multi-period and multi-product CLSCN model with centralized depots (CD) is developed in this work to maximize the profit and reduce the emission of CO2 in transportation.Design/methodology/approachThe proposed CD has the facility to store new batteries (NB), scrap batteries (SB) and lead ingot. The objective of the proposed research work is to identify potential location of CD using K-means clustering algorithm, to allocate facilities with CD using multi-facility allocation (MFA) algorithm and to minimize overall travel distance by allowing bidirectional flow of materials and products between facilities. The proposed eco-friendly CLSCN-CD model is solved using GAMS 23.5 for optimal solutions.FindingsThe performance of the proposed model is validated by comparing with existing model. The evaluation reveals that the proposed model is better than the existing model. The sensitivity analysis is demonstrated with different rate of return of SB, different proportion of recycled lead and different type of vehicles, which will help the management to take appropriate decision in the context of cost savings.Originality/valueThis research work has proposed single objective, multi echelon, multi period and multi product CLSCN-CD model in the battery manufacturing industry to maximize the profit and reduce the CO2 emission in transportation, by enhancing the bidirectional flow of materials/products between facilities of entire model.