A multi-stage stochastic programming model for sustainable closed-loop supply chain network design with financial decisions: A case study of plastic production and recycling supply chain

Abstract

This paper proposes a multi-objective, multi-stage programming model to design a sustainable closed-loop supply chain network considering financial decisions. A multi-product, sustainable closed-loop plastic Supply Chain Network Design (SCND) problem, which encompasses economic, environmental, and social objectives, is modeled in a mathematical manner. The decisions to be made were concerned with the location of facilities, flow of products, loans to take, and investments to make. Uncertainty issue was about the demand of customers and the rate of return on investment. The decision making model was formulated as a multi-objective, multi-stage mixed-integer linear programming problem and solved by implementing path formulation and augmented s-constraint methods. Computational analysis was carried out based on the subject company to determine the significance of the proposed model and the efficiency of integrating financial decisions with SCND decisions.