Development of a Mathematical Model for Facility Location in Green Closed-Loop Supply Chain with Learning Effect

Environment has become an important global issue in the current century. Hence in the recent years, green closed loop supply chain management has increasingly grown as a result of government regulation and consumer expectations. In this study, an effort has made to formulate a facility location model for a multi-period green closed loop supply chain network consisting of suppliers, manufacturers, distributers, customers and also recycling and disposal centers. A bi-objective mixed-integer linear programming model has proposed to design the supply chain network with minimization of total costs and carbon dioxide emission objectives in transportation, production, recycling and disposing processes. In addition in a supply chain, operation cost has major effect on the total cost. So, in this research has tried to consider learning curve (LC) effect on reducing time and cost of the production and recycling in the manufacturing and recycling centers. Then, the effect of using LC on the supply chain cost has investigated. The ε-constraint method has utilized to solve the bi-objective model and illustrating trade-off between objectives. The applicability of the model has demonstrated by a numerical example and sensitivity analysis.