Designing a closed-loop logistic network in supply chain by reducing its unfriendly consequences on environment

Abstract

This paper examines the relationship between the operations of forward and reverse logistics and the environmental performance measures likeCO2 emission in the network due to transportation activities in closed-loop supply chain network design. A closed-loop structure in the green supply chain logistics and the location selection optimization was proposed in order to integrate the environmental issues into a traditional logistic system. So, we present an integrated and a generalized closed-loop network design, consisting four echelons in forward direction (i.e., suppliers, plants, and distribution centers, first customer zone) and four echelons in backward direction (i.e., collection centers, dismantlers, disposal centers, and second customer zone) for the logistics planning by formulating a cyclic logistics network problem. The model presented is bi objective and captures the trade-offs between various costs inherent in the network and of emission of greenhouse gas CO2.Numerical experiments were presented, and the results showed that the proposed model and algorithm were able to support the logistic decisions in a closed loop supply chain efficiently and accurately.