Sustainable, resilient and responsive mixed supply chain network design under hybrid uncertainty with considering COVID-19 pandemic disruption.

Abstract

The occurrence of the COVID-19 pandemic is a disruption that has adversely affected many supply chains (SCs) around the world and further proved the necessity of combination and interaction of resilience and sustainability. In This paper, a multi-objective mixed-integer linear programming model is developed for responsive, resilient and sustainable mixed open and closed-loop supply chain network design (SCND) problem. The uncertainty of the problem is handled with a hybrid robust-stochastic optimization approach. A Lagrangian relaxation (LR) method and a constructive heuristic (CH) algorithm are developed for overcoming problem complexity and solving large-scale instances. In order to assess the performance of the mathematical model and solution methods, some test instances are generated. The computations showed that the model and the solution methods are efficient and can obtain high-quality solutions in suitable CPU times. Other analyses and computations are done based on a real case study in the tire industry. The results demonstrate that resilient strategies are so effective and can improve economic, environmental and social dimensions substantially. Research findings suggest that the proposed model can be used as an efficient tool for designing sustainable and resilient SCs and the related decision-makings. Also, our findings prove that resilience is necessary for continued SC sustainability. It is concluded that using proposed resilience strategies simultaneously brings the best outcome for SC objectives. Based on the sensitivity analyses, the responsiveness level significantly affects SC objectives, and managers should consider the trade-off between responsiveness and their objectives.