Designing a multi-objective closed-loop supply chain: a two-stage stochastic programming, method applied to the...

Area of Science:

• Operations Research
• Supply Chain Management
• Environmental Sustainability

Background:

• Growing global population increases demand for raw materials.
• Circular economy strategies are increasingly adopted by governments and industries.
• Rethinking supply chains is crucial for companies to meet sustainability goals.

Purpose of the Study:

• To model an exhaustive multi-echelon closed-loop supply chain (CLSC) network.
• To optimize profit, minimize emissions, and maximize job creation within the CLSC.
• To apply the model to Montreal's clothing industry, considering fast fashion's impact.

Main Methods:

• Development of a multi-objective optimization model for a CLSC network under uncertainty.
• Application of the augmented epsilon constraint method to handle conflicting objectives.
• Simulation of three scenarios over five years for two product types.

Main Results:

• The CLSC network model successfully optimizes profit, emissions, and job creation.
• The study quantifies the trade-offs between economic, environmental, and social objectives.
• The model's application in Montreal's garment industry shows positive outcomes.

Conclusions:

• The developed CLSC network model is attractive for companies seeking profitability and sustainability.
• Implementing circular economy principles in the garment industry can foster entrepreneurship.
• The model provides a framework for optimizing complex, multi-objective supply chains.