Multi-objective optimization for multi-echelon, multi-product, stochastic sustainable closed-loop supply chain

ABSTRACT

The closed-loop supply chain (CLSC) is the supply chain that includes various recovery plans for used products to be reused in the industry. Most of the previous stochastic CLSC studies considered the effect of uncertain parameter changes on the economic aspect only, while the other sustainability aspects were neglected. The purpose of this study is to develop a realistic mathematical model that represents and analyzes the impact of uncertainty in demand and recovery rate of products on the economic, environmental, and social sustainability aspects in the CLSC. The objective functions were optimized using the constrained optimization by linear approximation (COBYLA) algorithm along with preference-based Pareto optimal solution set algorithm at multiple computations to optimize various objectives simultaneously and efficiently. The results show a significant correlation between demand uncertainty, rate of return uncertainty, and the sustainability objectives in the CLSC using optimal inventory management settings.

KEYWORDS:

• Closed-loop supply chain (CLSC)
• stochastic sustainable CLSC
• COBYLA algorithm
• NSGA algorithm
• uncertainty parameters
• EMOA

Acknowledgments

The authors are grateful to Universiti Teknologi Malaysia (UTM) (Vote Number: 20H69).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Omar Elfarouk

Omar Mohamed Elfarouk is currently a PhD candidate at the university teknologi Malaysia , he is also working as an assistant lecturer and researcher in the industrial engineering department at the British university in Egypt with his M.SC. degree obtained from Cairo university. His interest in research is related to supply chain optimization, quality control and lean 6 sigma implementation.

Kuan Yew Wong

Kuan Yew Wong holds a PhD from the University of Birmingham, United Kingdom. He is a Professor and the Head of the Industrial and Systems Engineering Research Group in Universiti Teknologi Malaysia (UTM), Malaysia. He is also a Chartered Engineer and Fellow of the British Computer Society.

Wai Peng Wong

Wai Peng Wong holds a PhD from the National University of Singapore (NUS), Singapore. She is an Associate Professor and the Leader of the Operations Management Research Cluster in Universiti Sains Malaysia (USM), Malaysia.