Sustainable closed-loop supply chain for dairy industry with robust and heuristic optimization. (July 2021)

• Record Type: Journal Article
• Authors: Gholizadeh, Hadi; Jahani, Hamed; Abareshi, Ahmad; Goh, Mark
• Is Part Of: Computers & industrial engineering. Volume 157(2021)
• Publication Date: 2021-07
• Subjects: Robust optimization -- Closed-loop supply chain -- Augmented ε-constraint -- Diary; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2021.107324
• Languages: English
• ISSNs: 0360-8352

Abstract

Highlights: Reduction in run time using the heuristic for large-scale problems. Using a robust optimization approach and an augmented ε-constraint method. Higher profit for products with a longer lifetime under the worst-case scenario. Abstract: This paper supplements the augmented ε-constraint approach with linearization using robust optimization and heuristics with an improved algorithm to maximize the total profit and minimize the environmental effects of a sustainable closed-loop supply chain (CLSC) in the dairy industry. The resultant mixed-integer linear programming (MILP) model is applied to a case from the dairy industry and evaluated against several test problems. The pessimistic, optimistic, and worst-case scenarios are considered along with the sensitivity analysis on the profitability of the CLSC concerning the product lifetimes. Our results inform that applying the heuristic on large-scale problems yields a 25% improvement in runtime. Furthermore, products with a longer lifetime under the worst-case scenario yield greater profit than those products with a shorter lifetime under an optimistic scenario.