Green and sustainable closed-loop supply chain network design under uncertainty

Abstract

The continuous influence of global warming has profoundly changed the operation mode of the traditional supply chain network. The balance between costs reduction and environmental protection has become an effective attempt to improve sustainable competitiveness for enterprises. This study presents an integration perspective for developing a green and sustainable closed-loop supply chain (CLSC) network under uncertain demand. A bi-objective optimization model is proposed with two objectives for CO2 emissions and total operating cost. Decisions regarding the environmental level and the factors affecting the facilities capacity level have also been considered. The scenario-based method is adopted to represent the uncertain demand in the stochastic programming model. A Lagrangean relaxation method is developed to solve the model. The experimental results demonstrate the validity and efficiency of the proposed model and solution method. Several potentially useful managerial implications are also obtained for practitioners.