Multi-objective Design of Sustainable Closed-loop Supply Chain Considering Social Benefits: Metaheuristic Optimization Approaches

Document Type : Research Paper

Authors

1 Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran

2 School of Business, Innovation and Sustainability, Halmstad University, 301 18 Halmstad, Sweden

10.22070/jqepo.2024.17510.1255

Abstract

 In line with growing global concerns regarding environmental and social issues, supply chain
corporations are improving their environmental and social performances. The optimal design of a closedloop supply network must conceive various aspects, leading to a multi-objective problem. This study develops
a mixed-integer linear programming model to provide an integrated supply network with a particular focus
on sustainability. Besides cost efficiency, energy consumption, and job creation are incorporated as
additional objective functions. This article uniquely introduces the training of supply chain employees as part
of the developed model to address social responsibility. The Non-Dominated Sorting Genetic Algorithm-II
(NSGA-II) and Multiple Objective Particle Swarm Optimization (MOPSO) are employed to solve the multiobjective problem. The numerical examples for cost and energy values are based on real data. The results
demonstrate the significant effect of returned product recovery on cost reduction in the network and changes
in energy consumption at different levels. NSGA-II and MOPSO yield a set of optimal solutions that increase
the flexibility of decision-makers. Indeed, a set of Pareto solutions reveals a conflict between the objective
functions and allows the network to be highly effective in decision-making under different conditions and
policies.
 

Keywords


Ade Irawan, C., Dan-Asabe Abdulrahman, M., Salhi, S., & Luis, M. (2022). An efficient matheuristic algorithm for bi-objective sustainable closed-loop supply chain networks. IMA Journal of Management Mathematics, 33(4), 603-636.
Agahgolnezhad Gerdrodbari, M., Harsej, F., Sadeghpour, M., & Molani Aghdam, M. (2021). A green closed-loop supply chain for production and distribution of perishable products. Journal of Quality Engineering and Production Optimization, 6(1), 189-214.
Akbari-Kasgari, M., Khademi-Zare, H., Fakhrzad, M., Hajiaghaei-Keshteli, M., & Honarvar, M. (2020). A closed-loop supply chain network design problem in copper industry. International Journal of Engineering, 33(10), 2008-2015.
Alizadeh Afrouzy, Z., Paydar, M. M., Nasseri, S. H., & Mahdavi, I. (2018). A meta-heuristic approach supported by NSGA-II for the design and plan of supply chain networks considering new product development. Journal of Industrial Engineering International, 14(1), 95-109.
Ardakan, M. A., Hamadani, A. Z., & Alinaghian, M. (2015). Optimizing bi-objective redundancy allocation problem with a mixed redundancy strategy. ISA transactions, 55, 116-128.
Atabaki, M. S., Khamseh, A. A., & Mohammadi, M. (2019). A priority-based firefly algorithm for network design of a closed-loop supply chain with price-sensitive demand. Computers & Industrial Engineering, 135, 814-837.
Atabaki, M. S., Mirzazadeh, A., & Fazayeli, S. (2018). Price, production and order decisions in a one-manufacturer multi-retailer supply chain with fuzzy costs: two parameter tuned meta-heuristics. International Journal of Industrial and Systems Engineering, 29(3), 303-337.
Atabaki, M. S., Mohammadi, M., & Naderi, B. (2017). Hybrid genetic algorithm and invasive weed optimization via priority based encoding for location-allocation decisions in a three-stage supply chain. Asia-Pacific Journal of Operational Research, 34(02), 1750008.
Atabaki, M. S., Mohammadi, M., & Naderi, B. (2020). New robust optimization models for closed-loop supply chain of durable products: Towards a circular economy. Computers & Industrial Engineering, 146, 106520.
Attia, P. M., Grover, A., Jin, N., Severson, K. A., Markov, T. M., Liao, Y.-H., Chen, M. H., Cheong, B., Perkins, N., & Yang, Z. (2020). Closed-loop optimization of fast-charging protocols for batteries with machine learning. Nature, 578(7795), 397-402.
Babaveisi, V., Paydar, M. M., & Safaei, A. S. (2018a). Optimizing a multi-product closed-loop supply chain using NSGA-II, MOSA, and MOPSO meta-heuristic algorithms. Journal of Industrial Engineering International, 14(2), 305-326.
Babaveisi, V., Paydar, M. M., & Safaei, A. S. (2018b). Optimizing a multi-product closed-loop supply chain using NSGA-II, MOSA, and MOPSO meta-heuristic algorithms. Journal of Industrial Engineering International, 14, 305-326.
Bahrampour, P., Najafi, S. E., Hosseinzadeh Lotfi, F., & Edalatpanah, A. (2022). Development of scenario-based mathematical model for sustainable closed loop supply chain considering reliability of direct logistics elements. Journal of Quality Engineering and Production Optimization, 7(2), 232-266.
Battini, D., Bogataj, M., & Choudhary, A. (2017). Closed Loop Supply Chain (CLSC): Economics, Modelling, Management and Control. International journal of production economics, 183, 319-321. https://doi.org/https://doi.org/10.1016/j.ijpe.2016.11.020
Beamon, B. M. (1998). Supply chain design and analysis:: Models and methods. International journal of production economics, 55(3), 281-294.
Boronoos, M., Torabi, S. A., & Mousazadeh, M. (2019). A Bi-objective Mathematical Model for Closed-loop Supply Chain Network Design Problem. Journal of Quality Engineering and Production Optimization, 4(1), 85-98.
Boskabadi, A., Mirmozaffari, M., Yazdani, R., & Farahani, A. (2022). Design of a distribution network in a multi-product, multi-period green supply chain system under demand uncertainty. Sustainable Operations and Computers, 3, 226-237.
Braz, A. C., De Mello, A. M., de Vasconcelos Gomes, L. A., & de Souza Nascimento, P. T. (2018). The bullwhip effect in closed-loop supply chains: A systematic literature review. Journal of cleaner production, 202, 376-389.
De Angelis, R., Howard, M., & Miemczyk, J. (2018). Supply chain management and the circular economy: towards the circular supply chain. Production Planning & Control, 29(6), 425-437.
De Giovanni, P. (2022). Leveraging the circular economy with a closed-loop supply chain and a reverse omnichannel using blockchain technology and incentives. International Journal of Operations & Production Management(ahead-of-print).
Deb, K., Pratap, A., Agarwal, S., & Meyarivan, T. (2002). A fast and elitist multiobjective genetic algorithm: NSGA-II. IEEE transactions on evolutionary computation, 6(2), 182-197.
Dehghanian, F., & Mansour, S. (2009). Designing sustainable recovery network of end-of-life products using genetic algorithm. Resources, conservation and recycling, 53(10), 559-570.
Dehshiri, S. J. H., & Amiri, M. (2024). Considering the circular economy for designing closed-loop supply chain under hybrid uncertainty: A robust scenario-based possibilistic-stochastic programming. Expert Systems with Applications, 238, 121745.
Dossa, A. A., Gough, A., Batista, L., & Mortimer, K. (2022). Diffusion of circular economy practices in the UK wheat food supply chain. International Journal of Logistics Research and Applications, 25(3), 328-347.
Dou, G., & Cao, K. (2020). A joint analysis of environmental and economic performances of closed-loop supply chains under carbon tax regulation. Computers & Industrial Engineering, 146, 106624.
Ehsanifar, M., Dekamini, F., Spulbar, C., Birau, R., Khazaei, M., & Bărbăcioru, I. C. (2023). A sustainable pattern of waste management and energy efficiency in smart homes using the internet of things (IoT). Sustainability, 15(6), 5081.
Fathollahi-Fard, A. M., Hajiaghaei-Keshteli, M., & Mirjalili, S. (2018). Multi-objective stochastic closed-loop supply chain network design with social considerations. Applied Soft Computing, 71, 505-525.
Ferguson, M. E., & Souza, G. C. (2010). Closed-loop supply chains: new developments to improve the sustainability of business practices. Auerbach Publications.
Foroozesh, N., & Karimi, B. (2022). Designing a supply chain by considering secondary risks in the case of food industry: an integrated interval type-2 fuzzy approach. Journal of Quality Engineering and Production Optimization, 7(2), 93-106.
Garcia, D. J., & You, F. (2015). Supply chain design and optimization: Challenges and opportunities. Computers & Chemical Engineering, 81, 153-170.
Gebhardt, M., Spieske, A., & Birkel, H. (2022). The future of the circular economy and its effect on supply chain dependencies: Empirical evidence from a Delphi study. Transportation Research Part E: Logistics and Transportation Review, 157, 102570.
Gharye Mirzaei, M., Goodarzian, F., Maddah, S., Abraham, A., & Abdelkareim Gabralla, L. (2022). Investigating a dual-channel network in a sustainable closed-loop supply chain considering energy sources and consumption tax. Sensors, 22(9), 3547.
Gholipour, A., Sadegheih, A., Mostafaei Pour, A., & Fakhrzad, M. (2023). Designing an optimal multi-objective model for a sustainable closed-loop supply chain: a case study of pomegranate in Iran. Environment, Development and Sustainability, 1-35.
Golberg, D. E. (1989). Genetic algorithms in search, optimization, and machine learning. Addion wesley, 1989, 102.
Goodarzian, F., Hosseini-Nasab, H., & Fakhrzad, M. (2020). A multi-objective sustainable medicine supply chain network design using a novel hybrid multi-objective metaheuristic algorithm. International Journal of Engineering, 33(10), 1986-1995.
Govindan, K., Mina, H., Esmaeili, A., & Gholami-Zanjani, S. M. (2020). An integrated hybrid approach for circular supplier selection and closed loop supply chain network design under uncertainty. Journal of cleaner production, 242, 118317.
Guan, G., Jiang, Z., Gong, Y., Huang, Z., & Jamalnia, A. (2020). A bibliometric review of two decades’ research on closed-loop supply chain: 2001-2020. Ieee Access, 9, 3679-3695.
Hajiaghaei-Keshteli, M., & Fathollahi Fard, A. M. (2019). Sustainable closed-loop supply chain network design with discount supposition. Neural computing and applications, 31(9), 5343-5377.
Harrison, T. P., Lee, H. L., Neale, J. J., & Harrison, T. P. (2004). Principles for the strategic design of supply chains. The practice of Supply Chain Management: Where theory and application converge, 3-12.
Hasani, A., Mokhtari, H., & Fattahi, M. (2021). A multi-objective optimization approach for green and resilient supply chain network design: a real-life case study. Journal of cleaner production, 278, 123199.
Hashemi, S. H., Karimi, A., & Tavana, M. (2015). An integrated green supplier selection approach with analytic network process and improved Grey relational analysis. International journal of production economics, 159, 178-191.
Jafarzadeh, J., Amoozad Khalili, H., & Shoja, N. (2022). A Multi-Objective Mathematical Model for Dynamic Cellular Manufacturing System Design under Uncertainty: A Sustainable approach. Journal of Quality Engineering and Production Optimization, 7(1), 98-120.
Javanshir, H., Ebrahimnejad, S., & Nouri, S. (2012). Bi-objective supply chain problem using MOPSO and NSGA-II. International Journal of Industrial Engineering Computations, 3(4), 681-694.
Jian, J., Li, B., Zhang, N., & Su, J. (2021). Decision-making and coordination of green closed-loop supply chain with fairness concern. Journal of cleaner production, 298, 126779.
Juybari, M. N., Guilani, P. P., & Ardakan, M. A. (2022). Bi-objective sequence optimization in reliability problems with a matrix-analytic approach. Annals of Operations Research, 312(1), 275-304.
Karimi, S. K., Sadjadi, S. J., & Naini, S. G. J. (2022). A bi-objective production planning for a flexible supply chain solved using NSGA-II and MOPSO. International Journal of Industrial Engineering and Management, 13(1), 18.
Kazemi, M. J., Paydar, M. M., & Safaei, A. S. (2021). Designing a bi-objective rice supply chain considering environmental impacts under uncertainty. Scientia Iranica.
Keshavarz-Ghorbani, F., & Pasandideh, S. H. R. (2022). A Lagrangian relaxation algorithm for optimizing a bi-objective agro-supply chain model considering CO2 emissions. Annals of Operations Research, 314(2), 497-527.
Keshavarz-Ghorbani, F., & Pasandideh, S. H. R. (2023). Designing a multi-objective closed-loop supply chain for multi-period multi-generational products with social impacts considerations. Computers & Industrial Engineering, 109056.
Khazaei, M., Ramezani, M., Padash, A., & DeTombe, D. (2021). The quantification role of BWM in problem structuring methods: SYRCS methodology. the international workshop on best-worst method,
Khorshidvand, B., Soleimani, H., Sibdari, S., & Esfahani, M. M. S. (2021). Developing a two-stage model for a sustainable closed-loop supply chain with pricing and advertising decisions. Journal of cleaner production, 309, 127165.
Mehrjerdi, Y. Z., & Shafiee, M. (2021). A resilient and sustainable closed-loop supply chain using multiple sourcing and information sharing strategies. Journal of cleaner production, 289, 125141.
Mohammadi, M., & Nikzad, A. (2023). Sustainable and reliable closed-loop supply chain network design during pandemic outbreaks and disruptions. Operations Management Research, 16(2), 969-991.
Mohtashami, Z., Aghsami, A., & Jolai, F. (2020). A green closed loop supply chain design using queuing system for reducing environmental impact and energy consumption. Journal of cleaner production, 242, 118452.
Motevalli-Taher, F., Paydar, M. M., & Emami, S. (2020). Wheat sustainable supply chain network design with forecasted demand by simulation. Computers and Electronics in Agriculture, 178, 105763.
Nayeri, M. D., Khazaei, M., & Abdolahbeigi, D. (2022). The drivers of success in new-service development: Rough set theory approach. International Journal of Services and Operations Management, 43(4), 421-439.
Olfati, M., & Paydar, M. M. (2023). Towards a responsive-sustainable-resilient tea supply chain network design under uncertainty using big data. Socio-Economic Planning Sciences, 88, 101646.
Pasandideh, S. H. R., Niaki, S. T. A., & Asadi, K. (2015). Bi-objective optimization of a multi-product multi-period three-echelon supply chain problem under uncertain environments: NSGA-II and NRGA. Information Sciences, 292, 57-74.
Pasandideh, S. H. R., Rahbari, M., & Sadati-Keneti, Y. (2023). A Lagrangian relaxation algorithm and hybrid genetic algorithm-black widow optimization for perishable products supply chain with sustainable development goals consideration. Annals of Operations Research, 1-36.
Pourjavad, E., & Mayorga, R. V. (2019). Multi-objective fuzzy programming of closed-loop supply chain considering sustainable measures. International Journal of Fuzzy Systems, 21, 655-673.
Rahbari, M., Arshadi Khamseh, A., & Mohammadi, M. (2024). A novel robust probabilistic chance constrained programming and strategic analysis for Agri-food closed-loop supply chain under pandemic crisis. Soft Computing, 28(2), 1179-1214.
Rahbari, M., Khamseh, A. A., & Mohammadi, M. (2023a). A novel multi-objective robust fuzzy stochastic programming model for sustainable agri-food supply chain: case study from an emerging economy. Environmental Science and Pollution Research, 30(25), 67398-67442.
Rahbari, M., Khamseh, A. A., & Mohammadi, M. (2023b). Robust optimization and strategic analysis for agri-food supply chain under pandemic crisis: Case study from an emerging economy. Expert Systems with Applications, 225, 120081.
Ramanathan, U., He, Q., Subramanian, N., Gunasekaran, A., & Sarpong, D. (2023). Collaborative closed-loop supply chain framework for sustainable manufacturing: Evidence from the Indian packaging industry. Technological Forecasting and Social Change, 191, 122489. https://doi.org/https://doi.org/10.1016/j.techfore.2023.122489
Ramezani, M., Azar, A., & Khazaei, M. (2021). Gap analysis through a hybrid method: Critical systems heuristics and best worst method. the international workshop on best-worst method,
Ramezani, M., Khazaei, M., Gholian-Jouybari, F., Sandoval-Correa, A., Bonakdari, H., & Hajiaghaei-Keshteli, M. (2024). Turquoise hydrogen and waste optimization: A Bi-objective closed-loop and sustainable supply chain model for a case in Mexico. Renewable and Sustainable Energy Reviews, 195, 114329.
Raza, S. A. (2020). A systematic literature review of closed-loop supply chains. Benchmarking: An International Journal, 27(6), 1765-1798.
Rogers, D. S., & Tibben‐Lembke, R. (2001). An examination of reverse logistics practices. Journal of business logistics, 22(2), 129-148.
Salehi-Amiri, A., Zahedi, A., Gholian-Jouybari, F., Calvo, E. Z. R., & Hajiaghaei-Keshteli, M. (2022). Designing a closed-loop supply chain network considering social factors; a case study on avocado industry. Applied Mathematical Modelling, 101, 600-631.
Samadi, A., Mehranfar, N., Fathollahi Fard, A., & Hajiaghaei-Keshteli, M. (2018). Heuristic-based metaheuristics to address a sustainable supply chain network design problem. Journal of Industrial and Production Engineering, 35(2), 102-117.
Sarkis, J. (2003). A strategic decision framework for green supply chain management. Journal of cleaner production, 11(4), 397-409.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply chain management: an international journal, 17(2), 202-216.
Seydanlou, P., Jolai, F., Tavakkoli-Moghaddam, R., & Fathollahi-Fard, A. M. (2022). A multi-objective optimization framework for a sustainable closed-loop supply chain network in the olive industry: Hybrid meta-heuristic algorithms. Expert Systems with Applications, 203, 117566.
Shabbir, M. S., Mahmood, A., Setiawan, R., Nasirin, C., Arshad, M. A., Khan, S., & Batool, F. (2021). Closed-loop supply chain network design with sustainability and resiliency criteria Petra Christian University].
Shayannia, S. A. (2023). Presenting an agile supply chain mathematical model for COVID-19 (Corona) drugs using metaheuristic algorithms (case study: pharmaceutical industry). Environmental Science and Pollution Research, 30(3), 6559-6572.
Shehadeh, H. A., Idna Idris, M. Y., Ahmedy, I., Ramli, R., & Mohamed Noor, N. (2018). The multi-objective optimization algorithm based on sperm fertilization procedure (MOSFP) method for solving wireless sensor networks optimization problems in smart grid applications. Energies, 11(1), 97.
Soleimani, H., Chhetri, P., Fathollahi-Fard, A. M., Mirzapour Al-e-Hashem, S., & Shahparvari, S. (2022). Sustainable closed-loop supply chain with energy efficiency: Lagrangian relaxation, reformulations and heuristics. Annals of Operations Research, 318(1), 531-556.
Soori, M., Jafari, A., & Sahraeian, R. (2022). A New Sustainable Multi-objective Agri-food Supply chain in Mushroom Industry. Journal of Quality Engineering and Production Optimization, 7(1).
Srinivas, N., & Deb, K. (1994). Muiltiobjective optimization using nondominated sorting in genetic algorithms. Evolutionary computation, 2(3), 221-248.
Taghipour, A., Fooladvand, A., Khazaei, M., & Ramezani, M. (2023). Criteria clustering and supplier segmentation based on sustainable shared value using BWM and PROMETHEE. Sustainability, 15(11), 8670.
Taghipour, A., Foukolaei, P. Z., Ghaedi, M., & Khazaei, M. (2023). Sustainable Multi-Objective Models for Waste-to-Energy and Waste Separation Site Selection. Sustainability, 15(22), 15764.
Taghipour, A., Padash, A., Etemadi, V., Khazaei, M., & Ebrahimi, S. (2024). Sustainable and Circular Hotels and the Water–Food–Energy Nexus: Integration of Agrivoltaics, Hydropower, Solar Cells, Water Reservoirs, and Green Roofs. Sustainability, 16(5), 1985.
Taghipour, A., Ramezani, M., Khazaei, M., Roohparvar, V., & Hassannayebi, E. (2023). Smart transportation behavior through the COVID-19 pandemic: a ride-hailing system in Iran. Sustainability, 15(5), 4178.
Taghipour, A., Sohrabi, A., Ghaedi, M., & Khazaei, M. (2023). A robust vaccine supply chain model in pandemics: Case of Covid-19 in Iran. Computers & Industrial Engineering, 183, 109465.
Tavana, M., Kian, H., Nasr, A. K., Govindan, K., & Mina, H. (2022). A comprehensive framework for sustainable closed-loop supply chain network design. Journal of cleaner production, 332, 129777.
Ullah, M. (2023). Impact of transportation and carbon emissions on reverse channel selection in closed-loop supply chain management. Journal of cleaner production, 394, 136370.
Varas, M., Basso, F., Maturana, S., Osorio, D., & Pezoa, R. (2020). A multi-objective approach for supporting wine grape harvest operations. Computers & Industrial Engineering, 145, 106497.
Watson, M., Lewis, S., Cacioppi, P., & Jayaraman, J. (2013). Supply chain network design: applying optimization and analytics to the global supply chain. Pearson education.
Winkler, H. (2011). Closed-loop production systems—A sustainable supply chain approach. CIRP Journal of Manufacturing Science and Technology, 4(3), 243-246.
Yan, Y., Yao, F., & Sun, J. (2021). Manufacturer’s cooperation strategy of closed-loop supply chain considering corporate social responsibility. RAIRO-Operations Research, 55(6), 3639-3659.
Yavari, M., & Geraeli, M. (2019). Heuristic method for robust optimization model for green closed-loop supply chain network design of perishable goods. Journal of cleaner production, 226, 282-305.
Yavari, M., & Zaker, H. (2019). An integrated two-layer network model for designing a resilient green-closed loop supply chain of perishable products under disruption. Journal of cleaner production, 230, 198-218.
Yoo, S. H., & Cheong, T. (2021). Inventory model for sustainable operations of a closed-loop supply chain: Role of a third-party refurbisher. Journal of cleaner production, 315, 127810.
Yun, Y., Chuluunsukh, A., & Gen, M. (2020). Sustainable closed-loop supply chain design problem: A hybrid genetic algorithm approach. Mathematics, 8(1), 84.
Zarei-Kordshouli, F., Paydar, M. M., & Nayeri, S. (2023). Designing a dairy supply chain network considering sustainability and resilience: a multistage decision-making framework. Clean Technologies and Environmental Policy, 25(9), 2903-2927.
Zhang, X., Zhao, G., Qi, Y., & Li, B. (2019). A robust fuzzy optimization model for closed-loop supply chain networks considering sustainability. Sustainability, 11(20), 5726.
Zhao, S. T., Wu, K., & Yuan, X.-M. (2016). Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demand. European Journal of Operational Research, 255(2), 364-379.