Designing a new mathematical model for optimising a multi-product RFID-based closed-loop food supply chain with a green entrepreneurial orientation

Abstract

PurposeEnvironmental awareness is increasing among people in developing countries. In this regard, companies should consider ecological goals in addition to financial goals. Since the food industry is recognised as one of the largest emitters of CO2, profit and ecological objectives are optimised in radio-frequency identification (RFID) based closed-loop supply chain in the food industry in this paper.Design/methodology/approachBased on the literature, companies with a green entrepreneurial orientation (GEO) can turn ecological problems into opportunities using their proactiveness. In this regard, a new mixed-integer non-linear mathematical model is presented for optimising a new multi-product RFID-based closed-loop supply chain with a GEO in the food industry. The case study in this paper is Ofogh-e Kourosh company which is located in Iran. The GAMS software is used to code this model.FindingsThe optimum number of new products and materials flow was found among the closed-loop supply chain entities. Some factors as price, quality and warranty of products were considered, and the number of reopening of facilities if needed was set. The optimum node for RFID installation was found.Originality/valueThe paper presents a multi-objective mathematical model for optimising a multi-product RFID-based closed-loop supply chain with a GEO in the food industry. In addition, this paper gives insights into how can model this type of supply chain considering ecological and financial attributes.