Multi-objective mixed integer programming modelling for closed-loop supply chain network design: an enhanced Benders decomposition algorithm

Abstract

Considering a closed-loop supply chain (CLSC) network with uncertain demand and recycling rates, this article innovatively designs a multi-objective mixed-integer programming model that incorporates corporate social responsibility (CSR), a facility retrofit strategy (FRS), a flexible supply strategy (FSS) and a vehicle selection strategy (VSS). Then, robust optimization methods are applied to construct robust models under three situations of uncertainty. For the computational complexity of large-scale problems, an enhanced Benders decomposition algorithm (EBDA) is designed. A numerical case analysis is conducted using five different scale instances. First, compared to other algorithms, EBDA accelerates the solution efficiency while ensuring convergence. Secondly, the sensitivity of the objective weights and the trade-offs of multiple objectives are analysed. Finally, the impact is analysed of the uncertain environment, CSR, an FRS, an FSS and a VSS on the CLSC network. Decision makers need to balance three objectives to manage CLSC and use these strategies appropriately to address the negative impact of an uncertain environment.