A multi-stage stochastic programming model for sustainable closed-loop supply chain network design with financial decisions: A case study of plastic production and recycling supply chain

Document Type : Article

Authors

1 Department of Industrial Management, Management and Accounting Faculty, University of Shahid Beheshti, Tehran, Iran

2 School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

This paperproposes a multi-objective, multi-stage programming model to design a sustainable closed-loop supply chain network considering financial decisions. A multi-product, sustainable closed-loop plastic supply chain network design problem which encompasses economic, environmental and social objectives is modeled in a mathematical manner. The decisions to be made are concerned with location of facilities; the flow of products, loans to take and investments to make. Uncertainty issue is about demand of customers and investment's rate of return. The decision making model is formulated as a multi-objective, multi-stage mixed integer linear programming problem and is solved by implementing path formulation and augmented Ɛ-constraint methods. Computational analysis, is provided based on the subject company to determine the significance of the proposed model and the efficiency regarding integrating financial decisions with supply chain network design decisions.

Keywords

Scientia Iranica

Volume 27, Issue 1
Transactions on Industrial Engineering (E)
January and February 2020
Pages 377-395

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