A multi-objective multi-echelon green supply chain network design problem with risk-averse retailers in an uncertain environment

Authors

1 Department of industrial engineering, Science and Research branch, Islamic Azad University, Tehran, Iran

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

Abstract

In this paper, the multi-objective multi-echelon supply chain network design problem is investigated. The resulted problem considers uncertainty of single product demand and the downstream risk attitude simultaneously and integrate it into the greenness concept. That is, makes the model more realistic in comparison with the others. According to the related literature study, there is no specific study to design the green supply chain network based on the risk attitude of the retailer. This paper aims to deal with this research gap by formulating robust counterpart of the main proposed uncertain problem. To do this, the conditional value at risk (CVaR) method through the data-driven approach is applied to deal with demand uncertainty to makes the model to be convex and sensitive to the risk averseness level in a robust manner. In addition, uncertainty sets approach is employed to deal with the uncertainty of other three parameters according to CO2 emission. The augmented e-constraint method is used to transform the resulted multi-objective mathematical programming problem into the single objective one, to obtain the global optimal solution through the exact mathematical solution method. Finally, the model is successfully simulated and its results are illustrated through a numerical example.

Keywords

Scientia Iranica
Volume 24, Issue 1 - Serial Number 1
Transactions on Industrial Engineering (E)
February 2017
Pages 413-423

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