Multi-objective optimization for a combined location-routing-inventory system considering carbon-capped differences

Abstract

<p style='text-indent:20px;'>A combined location-routing-inventory system (CLRIS) in a three-echelon supply chain network is studied with environmental considerations. Specifically, a bi-objective mixed integer programming model is formulated for the CLRIS to deal with the trade-offs between the total cost and the carbon-capped difference (CCD). A multi-objective particle swarm optimization (MOPSO) heuristic solution procedure is developed and implemented to solve the bi-objective mixed integer programming problem. The bi-objective mixed integer programming model and the MOPSO heuristic procedure are applied to a real-life problem as an illustrative example. The approximate nondominated frontier formed by solutions not dominated by others can be used for the decision makers to make trade-offs between the total cost and the CCD. Sensitivity analyses are conducted, and the relationship among the carbon cap, CCD, the total cost and the carbon prices are examined, and relevant managerial insights are provided. Comparisons with other existing algorithms show that the MSPSO heuristic procedure has very good performance.</p>