Integration of sustainable closed-loop supply chain with reliability and possibility of new product development: a robust fuzzy optimisation model

Abstract

ABSTRACT The development of a new product is an essential factor in changing the structure of supply chains. This paper proposes a sustainable closed-loop supply chain network with the possibility of new product development. Using a robust fuzzy optimisation model, the objectives are maximising profits, maximising the number of created jobs, and maximising reliability. The environmental emissions are considered a limitation in our optimisation model. Some parameters are uncertain to make our problem more realistic, and accordingly, a robust fuzzy optimisation method is used. To manage the complexity of the proposed model, a Multi-objective Grey Wolf Optimisation (MOGWO) algorithm was developed for solving the large-sized tests. The performance of the proposed multi-objective optimisation algorithm is shown against a traditional method called a Non-dominated Sorting Genetic Algorithm (NSGA-II). Accordingly, 15 large-scale test problems are solved, and multi-objective optimisation metrics are defined to compare the performance of the algorithms. The results showed how significantly the uncertainty reduction could affect the values of total net profit and reliability. The applicability of the proposed model is shown in a real case study in the lighting industry to approve the appropriate performance of the proposed MOGWO.