Bi-objective robust closed-loop supply chain network design with considering various recovery options

Abstract

Todays, efficient management of logistics activities is an important source of creating competitive goals advantages. Besides, Due to increasing the environmental concern, government legislation and natural resource constraint, closed loop supply chain has attracted much attention. Hence, the interest for reusing products and materials has been increased. So considering environmental goals in supply chain problems has been a necessity. In this paper, we propose a new bi-objective Mixed Integer Linear Programming with multi-products, multi-echelon and various recovery options with limited capacity for minimizing costs and maximizing the use of recycled parts and renewable energies in manufacturing. In order to change the problem of the proposed model to a single objective problem, e -constraint method is used. For incorporating uncertainty in demand and return parameters, robust counterpart of multi-objective model is applied. Finally, proposed model is applied to a numerical example and some comparisons have been done, which show the advantages of the model. Results show that the conservatism of the solution increases when the price of robustness increases, so the proposed model can efficiently confront with uncertainty in bi-objective closed loop supply chain problem and this model is more practical in the real world than others.