A robust optimization approach for multi-objective, multi-product, multi-period, closed-loop green supply chain network designs under uncertainty and discount

ABSTRACT

One of the basic requirements of the companies to survive in real-world competitive environments is to make their supply chains as efficient as possible. Due to recent governmental regulations, environmental issues, and the development of the concept of social responsibility, the closed-loop supply chain management has been focused by many researchers. A closed-loop supply chain includes both forward and reverse supply chain networks with the purpose of combining environmental considerations with the traditional supply chain network designs through the collection of used products and activities related to their reuse. In this paper, a bi-objective, multi-period, multi-product, closed-loop supply chain network is designed under environmental considerations, discounts, and uncertainties. The deterministic model of the chain is first solved by three multi-objective decision-making methods. Then, based on real-world uncertainties involved in some of the parameters, a robust optimization model is proposed and solved using decision-making methods. At the end, the best deterministic and robust models are selected based on the displaced ideal solution.

KEYWORDS:

• Green supply chain
• multi-objective decision-making methods
• robust optimization
• uncertainty
• discount

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Javid Ghahremani Nahr

Javid Ghahremani Nahr is a researcher of Academic Center for Education, Culture, and Research (ACECR). He has received his Bachelor of Science degree in Industrial Engineering from Payame Noor University of Tabriz and his master’s degree in Industrial Engineering from Kharazmi University of Tehran in the subfield of logistics and Supply chain management. His research interests are in the areas of Supply chain network design and Uncertainty models. He has worked on Supply chain network design such as blood supply chain, pharmacy supply chain, cold chain network model, Green supply chain.

Seyed Hamid Reza Pasandideh

Seyed Hamid Reza Pasandideh received his BSc, MSc and PhD in Industrial Engineering from Sharif University of Technology. He is currently an Associate Professor in the Department of Industrial Engineering at Kharazmi University. His research interests are in the areas of inventory modeling, lot sizing and optimization of nonlinear and multi-objective models. He is the Editor of International Journal of Supply and Operations Management.

Seyed Taghi Akhavan Niaki

Seyed Taghi Akhavan Niaki is a distinguished Professor of Industrial Engineering at Sharif University of Technology. His research interests are in the areas of simulation modeling and analysis, applied statistics, multi-variate quality control, and operations research. Before joining Sharif University of Technology, he worked as a systems engineer and quality control manager for an Iranian Electric Meters Company. He received his Bachelor of Science degree in Industrial Engineering from Sharif University of Technology, his Master’s and PhD degrees both in Industrial Engineering from West Virginia University. He is the Editor-In-Chief of Scientia Iranica, the Editor of Scientia Iranica – Transactions E, the Executive Editor of the Scientific-Research Journal of Sharif, the Editor-In-Chief of Sharif Journal of Industrial Engineering and Management, and an editorial board member in several international journals. He is also a member of alpha-pi-mu.