IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v273y2019i1d10.1007_s10479-017-2701-2.html
   My bibliography  Save this article

Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem

Author

Listed:
  • Jyoti Dhingra Darbari

    (University of Delhi)

  • Devika Kannan

    (University of Southern Denmark)

  • Vernika Agarwal

    (University of Delhi)

  • P. C. Jha

    (University of Delhi)

Abstract

Immense concern for sustainability and increasing stakeholders’ involvement has sparked tremendous interest towards designing optimal supply chain networks with significant economic, environmental, and social influence. Central to the idea, this study aims to design a closed loop supply chain (CLSC) network for an Indian laptop manufacturer. The network configuration, which involves a manufacturer, suppliers, third party logistics providers (forward and reverse), retailers, customers and a non-government organisation (NGO), is modelled as a mixed integer linear programming problem with fuzzy goals of minimising environmental impact and maximising net profit and social impact, subject to fuzzy demand and capacity constraints. Profit is generated from the sale of primary and secondary laptops, earned tax credits, and revenue sharing with reverse logistics providers. The environmental implications are investigated by measuring the carbon emitted due to activities of manufacturing, assembling, dismantling, fabrication, and transportation. The social dimension is quantified in terms of the number of jobs created, training hours, community service hours, and donations to NGO. The novelty of the model rests on its quantification of the three triple bottom line (TBL) indicators and on its use of AHP–TOPSIS for modelling the multi-criteria perspectives of the stakeholders. Numerical weights for the triple lines of sustainability are utilized. Further, a fuzzy multi-objective programming approach that integrates fuzzy set theory with goal programming techniques is utilised to yield properly efficient solutions to the multi-objective problem and to provide a trade-off set for conflicting objectives. The significance of the CLSC model is empirically established as a decision support tool for improving the TBL performance of a particular Indian laptop manufacturer. Practical and theoretical implications are derived from the result analysis, and a generalised quantitative closed-loop model can be effectively adapted by other electronic manufacturers to increase their competitiveness, profitability, and to improve their TBL.

Suggested Citation

  • Jyoti Dhingra Darbari & Devika Kannan & Vernika Agarwal & P. C. Jha, 2019. "Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem," Annals of Operations Research, Springer, vol. 273(1), pages 693-738, February.
    • Handle: RePEc:spr:annopr:v:273:y:2019:i:1:d:10.1007_s10479-017-2701-2
    DOI: 10.1007/s10479-017-2701-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-017-2701-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-017-2701-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kannan Govindan & P.C. Jha & Kiran Garg, 2016. "Product recovery optimization in closed-loop supply chain to improve sustainability in manufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 54(5), pages 1463-1486, March.
    2. R. E. Bellman & L. A. Zadeh, 1970. "Decision-Making in a Fuzzy Environment," Management Science, INFORMS, vol. 17(4), pages 141-164, December.
    3. Devika Kannan & Kannan Govindan & Madan Shankar, 2016. "Formalize recycling of electronic waste," Nature, Nature, vol. 530(7590), pages 281-281, February.
    4. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    5. Antonio Chamorro & Sergio Rubio & Francisco J. Miranda, 2009. "Characteristics of research on green marketing," Business Strategy and the Environment, Wiley Blackwell, vol. 18(4), pages 223-239, May.
    6. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    7. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhao, Jun-Hong, 2009. "Review on multi-criteria decision analysis aid in sustainable energy decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2263-2278, December.
    8. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.
    9. Sundarakani, Balan & de Souza, Robert & Goh, Mark & Wagner, Stephan M. & Manikandan, Sushmera, 2010. "Modeling carbon footprints across the supply chain," International Journal of Production Economics, Elsevier, vol. 128(1), pages 43-50, November.
    10. Mohammad Fattahi & Kannan Govindan, 2017. "Integrated forward/reverse logistics network design under uncertainty with pricing for collection of used products," Annals of Operations Research, Springer, vol. 253(1), pages 193-225, June.
    11. Anil Jindal & Kuldip Singh Sangwan, 2017. "Multi-objective fuzzy mathematical modelling of closed-loop supply chain considering economical and environmental factors," Annals of Operations Research, Springer, vol. 257(1), pages 95-120, October.
    12. Accorsi, Riccardo & Manzini, Riccardo & Pini, Chiara & Penazzi, Stefano, 2015. "On the design of closed-loop networks for product life cycle management: Economic, environmental and geography considerations," Journal of Transport Geography, Elsevier, vol. 48(C), pages 121-134.
    13. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    14. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    15. Jaehn, Florian, 2016. "Sustainable Operations," European Journal of Operational Research, Elsevier, vol. 253(2), pages 243-264.
    16. Pérez-Fortes, Mar & Laínez-Aguirre, José Miguel & Arranz-Piera, Pol & Velo, Enrique & Puigjaner, Luis, 2012. "Design of regional and sustainable bio-based networks for electricity generation using a multi-objective MILP approach," Energy, Elsevier, vol. 44(1), pages 79-95.
    17. V. Daniel R. Guide & Luk N. Van Wassenhove, 2009. "OR FORUM---The Evolution of Closed-Loop Supply Chain Research," Operations Research, INFORMS, vol. 57(1), pages 10-18, February.
    18. Joseph Sarkis & Marilyn Michelle Helms & Aref A. Hervani, 2010. "Reverse logistics and social sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(6), pages 337-354, November.
    19. Marcus Brandenburg & Tobias Rebs, 2015. "Sustainable supply chain management: a modeling perspective," Annals of Operations Research, Springer, vol. 229(1), pages 213-252, June.
    20. Pietro Giovanni, 2014. "Environmental collaboration in a closed-loop supply chain with a reverse revenue sharing contract," Annals of Operations Research, Springer, vol. 220(1), pages 135-157, September.
    21. Chuang, Chia-Hung & Wang, Charles X. & Zhao, Yabing, 2014. "Closed-loop supply chain models for a high-tech product under alternative reverse channel and collection cost structures," International Journal of Production Economics, Elsevier, vol. 156(C), pages 108-123.
    22. Soysal, M. & Bloemhof-Ruwaard, J.M. & van der Vorst, J.G.A.J., 2014. "Modelling food logistics networks with emission considerations: The case of an international beef supply chain," International Journal of Production Economics, Elsevier, vol. 152(C), pages 57-70.
    23. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    24. Chaabane, A. & Ramudhin, A. & Paquet, M., 2012. "Design of sustainable supply chains under the emission trading scheme," International Journal of Production Economics, Elsevier, vol. 135(1), pages 37-49.
    25. Brandenburg, Marcus & Govindan, Kannan & Sarkis, Joseph & Seuring, Stefan, 2014. "Quantitative models for sustainable supply chain management: Developments and directions," European Journal of Operational Research, Elsevier, vol. 233(2), pages 299-312.
    26. Gimenez, Cristina & Sierra, Vicenta & Rodon, Juan, 2012. "Sustainable operations: Their impact on the triple bottom line," International Journal of Production Economics, Elsevier, vol. 140(1), pages 149-159.
    27. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
    28. Erol, Ismail & Sencer, Safiye & Sari, Ramazan, 2011. "A new fuzzy multi-criteria framework for measuring sustainability performance of a supply chain," Ecological Economics, Elsevier, vol. 70(6), pages 1088-1100, April.
    29. Michael Altmann, 2015. "A supply chain design approach considering environmentally sensitive customers: the case of a German manufacturing SME," International Journal of Production Research, Taylor & Francis Journals, vol. 53(21), pages 6534-6550, November.
    30. Pishvaee, M.S. & Razmi, J. & Torabi, S.A., 2014. "An accelerated Benders decomposition algorithm for sustainable supply chain network design under uncertainty: A case study of medical needle and syringe supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 14-38.
    31. Ravi Shankar Kumar & Alok Choudhary & Soudagar A. K. Irfan Babu & Sri Krishna Kumar & A. Goswami & M. K. Tiwari, 2017. "Designing multi-period supply chain network considering risk and emission: a multi-objective approach," Annals of Operations Research, Springer, vol. 250(2), pages 427-461, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Yongjian & Feng, Lipan & Govindan, Kannan & Xu, Fangchao, 2019. "Effects of a secondary market on original equipment manufactures’ pricing, trade-in remanufacturing, and entry decisions," European Journal of Operational Research, Elsevier, vol. 279(3), pages 751-766.
    2. Jian Zhou & Wenying Xia & Ke Wang & Hui Li & Qianyu Zhang, 2020. "Fuzzy Bi-Objective Closed-Loop Supply Chain Network Design Problem with Multiple Recovery Options," Sustainability, MDPI, vol. 12(17), pages 1-26, August.
    3. Tautenhain, Camila P.S. & Barbosa-Povoa, Ana Paula & Mota, Bruna & Nascimento, Mariá C.V., 2021. "An efficient Lagrangian-based heuristic to solve a multi-objective sustainable supply chain problem," European Journal of Operational Research, Elsevier, vol. 294(1), pages 70-90.
    4. Navid Zarbakhshnia & Devika Kannan & Reza Kiani Mavi & Hamed Soleimani, 2020. "A novel sustainable multi-objective optimization model for forward and reverse logistics system under demand uncertainty," Annals of Operations Research, Springer, vol. 295(2), pages 843-880, December.
    5. Shiva Zandkarimkhani & Hassan Mina & Mehdi Biuki & Kannan Govindan, 2020. "A chance constrained fuzzy goal programming approach for perishable pharmaceutical supply chain network design," Annals of Operations Research, Springer, vol. 295(1), pages 425-452, December.
    6. Anshu Gupta & Pallavi Sharma & Akansha Jain & Hongbo Xue & S. C. Malik & P. C. Jha, 2023. "An integrated DEMATEL Six Sigma hybrid framework for manufacturing process improvement," Annals of Operations Research, Springer, vol. 322(2), pages 713-753, March.
    7. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    8. Muhammad Adeel Munir & Amjad Hussain & Muhammad Farooq & Muhammad Salman Habib & Muhammad Faisal Shahzad, 2023. "Data-Driven Transformation: The Role of Ambidexterity and Analytics Capability in Building Dynamic and Sustainable Supply Chains," Sustainability, MDPI, vol. 15(14), pages 1-37, July.
    9. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    10. Battaïa, Olga & Guillaume, Romain & Krug, Zoé & Oloruntoba, Richard, 2023. "Environmental and social equity in network design of sustainable closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 264(C).
    11. Qi Wang & Kebing Chen & Shengbin Wang & Xiaogang Cao, 2022. "Optimal decisions in a closed-loop supply chain: fairness concerns, corporate social responsibility and information value," Annals of Operations Research, Springer, vol. 309(1), pages 277-304, February.
    12. Navid Zarbakhshnia & Kannan Govindan & Devika Kannan & Mark Goh, 2023. "Outsourcing logistics operations in circular economy towards to sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 134-162, January.
    13. Sonu Rajak & K. E. K. Vimal & Sricharan Arumugam & Jagadesan Parthiban & Swesh Kannan Sivaraman & Jayakrishna Kandasamy & Angel Acevedo Duque, 2022. "Multi-objective mixed-integer linear optimization model for sustainable closed-loop supply chain network: a case study on remanufacturing steering column," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6481-6507, May.
    14. Mastrocinque, Ernesto & Ramírez, F. Javier & Honrubia-Escribano, Andrés & Pham, Duc T., 2022. "Industry 4.0 enabling sustainable supply chain development in the renewable energy sector: A multi-criteria intelligent approach," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    15. T. Prabhuram & M. Rajmohan & Youchao Tan & R. Robert Johnson, 2020. "Performance evaluation of Omni channel distribution network configurations using multi criteria decision making techniques," Annals of Operations Research, Springer, vol. 288(1), pages 435-456, May.
    16. Govindan, Kannan & Rajeev, A. & Padhi, Sidhartha S. & Pati, Rupesh K., 2020. "Supply chain sustainability and performance of firms: A meta-analysis of the literature," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    17. Feng, Lipan & Zheng, Xiong & Govindan, Kannan & Xue, Kelei, 2019. "Does the presence of secondary market platform really hurt the firm?," International Journal of Production Economics, Elsevier, vol. 213(C), pages 55-68.
    18. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    19. Rukiye Kaya & Said Salhi & Virginia Spiegler, 2023. "A novel integration of MCDM methods and Bayesian networks: the case of incomplete expert knowledge," Annals of Operations Research, Springer, vol. 320(1), pages 205-234, January.
    20. Lubna El-Sheikh & Rebeka Kovačič Lukman, 2022. "Developing a Framework for Closed-Loop Supply Chain and Its Impact on Sustainability in the Petrochemicals Industry," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    21. Masoud Alinezhad & Iraj Mahdavi & Milad Hematian & Erfan Babaee Tirkolaee, 2022. "A fuzzy multi-objective optimization model for sustainable closed-loop supply chain network design in food industries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8779-8806, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbosa-Póvoa, Ana Paula & da Silva, Cátia & Carvalho, Ana, 2018. "Opportunities and challenges in sustainable supply chain: An operations research perspective," European Journal of Operational Research, Elsevier, vol. 268(2), pages 399-431.
    2. Van Engeland, Jens & Beliën, Jeroen & De Boeck, Liesje & De Jaeger, Simon, 2020. "Literature review: Strategic network optimization models in waste reverse supply chains," Omega, Elsevier, vol. 91(C).
    3. Rohmer, S.U.K. & Gerdessen, J.C. & Claassen, G.D.H., 2019. "Sustainable supply chain design in the food system with dietary considerations: A multi-objective analysis," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1149-1164.
    4. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.
    5. Mota, Bruna & Gomes, Maria Isabel & Carvalho, Ana & Barbosa-Povoa, Ana Paula, 2018. "Sustainable supply chains: An integrated modeling approach under uncertainty," Omega, Elsevier, vol. 77(C), pages 32-57.
    6. Sara Al-Haidous & Tareq Al-Ansari, 2019. "Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    7. Zhalechian, M. & Tavakkoli-Moghaddam, R. & Zahiri, B. & Mohammadi, M., 2016. "Sustainable design of a closed-loop location-routing-inventory supply chain network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 182-214.
    8. Ozden Tozanli & Gazi Murat Duman & Elif Kongar & Surendra M. Gupta, 2017. "Environmentally Concerned Logistics Operations in Fuzzy Environment: A Literature Survey," Logistics, MDPI, vol. 1(1), pages 1-42, June.
    9. Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes & Tan Yigitcanlar, 2021. "Multi-Objective Optimization for Sustainable Supply Chain and Logistics: A Review," Sustainability, MDPI, vol. 13(24), pages 1-31, December.
    10. Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2016. "Closed-loop supply chains: What reverse logistics factors influence performance?," International Journal of Production Economics, Elsevier, vol. 175(C), pages 35-49.
    11. Varsei, Mohsen & Polyakovskiy, Sergey, 2017. "Sustainable supply chain network design: A case of the wine industry in Australia," Omega, Elsevier, vol. 66(PB), pages 236-247.
    12. Xin Zhang & Gang Zhao & Yingxiu Qi & Botang Li, 2019. "A Robust Fuzzy Optimization Model for Closed-Loop Supply Chain Networks Considering Sustainability," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    13. Reddy, K. Nageswara & Kumar, Akhilesh & Choudhary, Alok & Cheng, T. C. Edwin, 2022. "Multi-period green reverse logistics network design: An improved Benders-decomposition-based heuristic approach," European Journal of Operational Research, Elsevier, vol. 303(2), pages 735-752.
    14. Schöll, Michaela, 2017. "Three Essays on Sustainable Supply Chain Management – Towards Sustainable Supplier Selection and Sustainable Sourcing," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 172463, July.
    15. Fahimnia, Behnam & Jabbarzadeh, Armin, 2016. "Marrying supply chain sustainability and resilience: A match made in heaven," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 306-324.
    16. Zahra Homayouni & Mir Saman Pishvaee & Hamed Jahani & Dmitry Ivanov, 2023. "A robust-heuristic optimization approach to a green supply chain design with consideration of assorted vehicle types and carbon policies under uncertainty," Annals of Operations Research, Springer, vol. 324(1), pages 395-435, May.
    17. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    18. Heydari, Jafar & Govindan, Kannan & Sadeghi, Razieh, 2018. "Reverse supply chain coordination under stochastic remanufacturing capacity," International Journal of Production Economics, Elsevier, vol. 202(C), pages 1-11.
    19. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    20. Weihua Liu & Enze Bai & Liwei Liu & Wanying Wei, 2017. "A Framework of Sustainable Service Supply Chain Management: A Literature Review and Research Agenda," Sustainability, MDPI, vol. 9(3), pages 1-25, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:273:y:2019:i:1:d:10.1007_s10479-017-2701-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.