Sustainable Closed-Loop Supply Chain Network Design with Joint Economic Lot Sizing Problem

Abstract

In the fashion of sustainable development and a friendly environment, the traditional supply chain, specifically network design, is no longer sufficient for sustainability needs. With the increasing demand for them and toward a holistic model in a sustainable closed-loop supply chain (SCLSC),we proposed the network design and joint economic lot-sizing problems (JELS). The new problem is modeled as a mixed-integer multi-objective problem, considering the three factors of sustainability: maximizing total profit, minimizing the total amount of CO2emissions, and maximizing social job opportunities. In orderto achieve optimal decisions of facility location, amount flow, cycle time, and the number of shipments delivered in each inventory. The experiment analysis usedfiveperformanceindicatorscomparedtothenon-dominatedsortinggenetic algorithm-II. Finally, the results show that the proposed model of SCLSC network design with JELS is reaching a more accurate and better decision in all three aspects of sustainability.