Closed loop supply chain mathematical modeling considering lean agile resilient and green strategies

Abstract

The supply chain management is planning, implementation and effective control of supply chain operations considered as a key factor for the competitiveness of the organizations. To make these targets, four management strategies of lean, agile, resilient and green have been separately proposed. Recently, studies have been performed with a consideration of these four strategies simultaneously named LARG (Lean, Agile, Resilient and Green). However, due to the novelty of this subject, the mathematical modeling of SCND (Supply Chain Network Design) has not been addressed in LARG strategy. SCND is one of the most essential parts of supply chain management that strategic decisions of it have heavily effects in both overall and partial applicability of the supply chain. The goal of this paper is to design a closed loop supply chain network considering LARG strategy using multi-objective modeling with uncertain demand. The objective functions are total profit, customer satisfaction and total pollution. The model is formulated to determine which facility sites should be selected (strategic decisions), and find out the optimal number of parts and products in the network (tactical decisions). Finally, a real industrial case study is provided to illustrate the performance and applicability of the LARG strategy in SCND in practice.