Optimization of Profit, Risk and Service Level in Designing a Closed Loop Supply Chain Network by Considering the Location of Competitive Facilities in Uncertainty Conditions

Abstract

This study presents an approach to modeling a closed loop supply chain design with the aim of maximizing profits and service levels and minimizing risk. Risk factor should be considered in strategic network decisions because the decision maker can make the supply chain profitable from the most prevalent risk. The main idea and innovation of this research is to provide a model to improve the models used in the field of demand dependent price changes. Changes in price and demand will be considered in strategic chain decisions. The second innovation of this research is considering the risk factor, which quantitative research has considered the risk factor in the discussion of supply chain competitiveness. Also, since the model is multi-objective, we used the epsilon constraint method to solve the problem in small dimensions and the Non-dominant sorting genetic algorithm method (NSGA-II) to solve large dimensions of the problem.