Fuzzy multi-objective approach for optimal selection of suppliers and transportation decisions in an eco-efficient closed loop supply chain network

Abstract

Establishment of a closed loop supply chain (CLSC) network has attracted immense significance due to government policies and societal demand for environmental consciousness. However, to enhance the financial and ecological impact of the network, the forward and reverse supply chain networks must integrate well so that decisions taken in both areas complement each other. In this study, we propose an eco-efficient CLSC design for extending the existing supply chain of an Indian firm that assembles inkjet printers. The network design is configured as a multi-objective model in a multi-period setting and is mathematically formulated into a mixed integer programming problem with fuzzy objectives. Fuzziness provides flexibility to the decision makers because they must accommodate the conflicting nature of the objectives. The fuzzy multi-objective model incorporates the firm's economic and environmental concerns into the decision making process by selecting environmentally responsible suppliers to procure components based on sustainable criteria, choosing appropriate recovery options for end-of-use (EOU) inkjet printers, and planning an efficient transportation network design for reducing the carbon emission of the distribution and collection activities. The uniqueness of the proposed fuzzy CLSC optimization model lies in providing an integrated decision making framework that can aid the manufacturer in making crucial strategic, tactical, and operational decisions of optimal selection of suppliers, component order allocation, recovery flow allocation, and vehicle routing planning. The novelty of the model also lies in simultaneously minimising the overall cost of the activities undertaken, maximizing the performance of the component suppliers and minimising the carbon emissions of the associated transportation activities. A weighted fuzzy mathematical programming approach is utilised for generating a fuzzy, properly efficient solution as the desired compromised solution for the CLSC network problem configuration. The relevance of the model is justified using a real data set derived from a case study of the firm based in the northern capital region (NCR) of India. The findings indicate that the proposed integrated CLSC network model enables the firm in gaining sustainably from the numerous electronic product reuse opportunities in the Indian market. Further, while costly to begin with, choosing suppliers with higher sustainable performance and vehicles with lesser emission rate could substantially enhance firm's sustainable image and result in higher profits in the future.