Resolution of an uncertain closed-loop logistics model: An application to fuzzy linear programs with risk analysis

Abstract

With the urgency of global warming, green supply chain management, logistics in particular, has drawn the attention of researchers. Although there are closed-loop green logistics models in the literature, most of them do not consider the uncertain environment in general terms. In this study, a generalized model is proposed where the uncertainty is expressed by fuzzy numbers. An interval programming model is proposed by the defined means and mean square imprecision index obtained from the integrated information of all the level cuts of fuzzy numbers. The resolution for interval programming is based on the decision maker (DM)’s preference. The resulting solution provides useful information on the expected solutions under a confidence level containing a degree of risk. The results suggest that the more optimistic the DM is, the better is the resulting solution. However, a higher risk of violation of the resource constraints is also present. By defining this probable risk, a solution procedure was developed with numerical illustrations. This provides a DM trade-off mechanism between logistic cost and the risk.