Title: Sustainable open-loop supply chain network design considering location routing problem: a hybrid approach based on FAHP, FTOPSIS, and mathematical programming

Authors: Shiva Zandkarimkhani; Mohammad Mahdi Nasiri; Jafar Heydari

Addresses: Department of Industrial Engineering, University of Tehran, Alborz Campus, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Iran

Abstract: This paper proposes a two-stage approach for designing the sustainable reverse supply chain network. In the first stage of the proposed approach, the values of potential locations from the social perspective will be evaluated and computed using a hybrid approach of fuzzy analytic hierarchy process (FAHP) and fuzzy TOPSIS (FTOPSIS). Then, in the second stage, a multi-objective mixed-integer linear programming model is applied to develop a sustainable open-loop supply chain network for cost minimisation and for the maximisation of the social value of the established locations. In the proposed model, location-routing decisions, discounts on purchases from suppliers, storage, and encountering with shortages are simultaneously taken into account. Finally, the proposed model is validated using the data of a PET manufacturing company in Iran. The results confirm the efficiency and effectiveness of the proposed approach.

Keywords: reverse logistics; sustainable supply chain; mathematical programming; multi-criteria decision making; fuzzy theory.

DOI: 10.1504/IJLSM.2020.107229

International Journal of Logistics Systems and Management, 2020 Vol.36 No.1, pp.92 - 123

Received: 07 Aug 2018
Accepted: 24 Sep 2018

Published online: 06 May 2020 *

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