Integration of sustainable closed-loop supply chain with reliability and possibility of new product development: a robust fuzzy optimisation model

ABSTRACT

The development of a new product is an essential factor in changing the structure of supply chains. This paper proposes a sustainable closed-loop supply chain network with the possibility of new product development. Using a robust fuzzy optimisation model, the objectives are maximising profits, maximising the number of created jobs, and maximising reliability. The environmental emissions are considered a limitation in our optimisation model. Some parameters are uncertain to make our problem more realistic, and accordingly, a robust fuzzy optimisation method is used. To manage the complexity of the proposed model, a Multi-objective Grey Wolf Optimisation (MOGWO) algorithm was developed for solving the large-sized tests. The performance of the proposed multi-objective optimisation algorithm is shown against a traditional method called a Non-dominated Sorting Genetic Algorithm (NSGA-II). Accordingly, 15 large-scale test problems are solved, and multi-objective optimisation metrics are defined to compare the performance of the algorithms. The results showed how significantly the uncertainty reduction could affect the values of total net profit and reliability. The applicability of the proposed model is shown in a real case study in the lighting industry to approve the appropriate performance of the proposed MOGWO.

KEYWORDS:

• Sustainable closed-loop supply chain
• robust fuzzy optimisation
• reliability
• new product development

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The data that support the findings of this study are available from the corresponding author, upon reasonable request.

Additional information

Notes on contributors

Hadi Mirzagoltabar

Hadi Mirzagoltabar is the Ph.D. candidate of Industrial Engineering at Mazandaran University of Science and Technology, Babol, Iran. He has graduated with MSc in Industrial Engineering. His research interests include computer supply chain management, multi-objective optimization. He has published over 10 research papers.

Babak Shirazi

Babak Shirazi is the associate professor of Industrial Engineering at Mazandaran University of Science and Technology, Babol, Iran. He studied Computer Engineering at Tehran University from 1996 to 2000. He has graduated with MSc and Ph.D. in industrial engineering from Mazandaran University of Science and Technology, Babol, Iran, in 2005 and 2010, respectively. His research interests include simulation modeling in manufacturing system and supply chain management, Enterprise Architecture, and industrial enterprise development strategy setting. He has published over 70 research papers.

Iraj Mahdavi

Iraj Mahdavi is a full professor of Industrial Engineering at Mazandaran University of Science and Technology, Babol, Iran. He studied Industrial Engineering at Iran University of Science and Technology. His research interests include Network design, metaheuristic methods, cloud computing, and business process. He has published over 100 research papers.

Alireza Arshadi Khamseh

Alireza Arshadi Khamseh got his Ph.D. in 2006 and has several years of experience working in the Industrial Engineering Department of Kharazmi University of Tehran, Iran as an associate professor. He has obtained his Bachelor, Master and Ph.D. degree in Industrial Engineering. He is working for more than 8 years on Supply Chain Management and Logistic Engineering. He has published several papers in prestigious International journals. His interest areas are Resiliency in SCM, Network Design, and Pricing.