A Bi-Objective Facility Location Model for A Green Closed-Loop Supply Chain Network Design

With globalization and the massive growth in consumption worldwide, supply chain networks have changed to very large networks and the components of these large networks caused serious environmental problems. In traditional supply chain network design, optimization models are mostly single-objective and the aim is to minimize the cost of the network. In this paper, a new two-objective mixed integer linear model for closed-loop supply chain network design has been proposed that consider both forward and reverse flow to avoid sub- optimality. The proposed model takes all aspects of possible carbon dioxide emissions in the proposed supply chain network and considers a fair and reasonable balance between economic and environmental objectives are established. To illustrate the trade off between the goals, epsilon constraint method has been used. To demonstrate the effectiveness and applicability of the proposed model, this study utilizes data owned from a case study of a copying industry closed loop supply chain. This paper can help managers improve the environmental performance of green logistics in the supply chain as a supplement strategy for the benefit of sustainable competitive advantage.