Multi-objective optimization of cost-effective and customer-centric closed-loop supply chain management model in T-environment

Abstract

This article presents one real-life-based cost-effective and customer-centric closed-loop supply chain management model. The review of the existing literature identifies the classical performance indicators to any supply chain management model as the aggregate revenue, the customer satisfaction and the environmental concern. However, this review fails to find a single optimization-based supply chain management model that considers these three indicators, simultaneously. In this article, the proposed model maximizes the customer-satisfaction index and the aggregate revenue both under the environmental considerations via the reverse chain, whereas many existing studies took the reverse chain and the associated subsidies into account; this is the first mathematical model that optimizes the customer-satisfaction index, at the same time. This article employs the T-set that represents the inherent impreciseness to objective functions to the proposed model. The corresponding optimal values are superior than stipulated goals to both the objective functions in T-environment. The managerial insights extracted from sensitivity analysis of parameters suggest the managers to stabilize the environmental concern and the customer satisfaction, while ensuring the cost-effectiveness in real-life-based T-environment. Also, this analysis finds that the subsidy assists any supply chain to sustain, only if it is offered without any break and within the optimally determined bounds.