IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i3d10.1007_s10668-023-02953-3.html
   My bibliography  Save this article

Designing a multi-objective closed-loop supply chain: a two-stage stochastic programming, method applied to the garment industry in Montréal, Canada

Author

Listed:
  • Erfan Shafiee Roudbari

    (Concordia University)

  • S. M. T. Fatemi Ghomi

    (Amirkabir University of Technology)

  • Ursula Eicker

    (Concordia University)

Abstract

The global population continues to grow, which expands demand for raw materials. Meanwhile, governments are developing circular economy strategies within cities and their industries. A circular economy utilizes refurbishing, reusing, remanufacturing, and repairing of products and materials. For companies, this involves to set targets and to rethink their supply chain. This paper seeks to model an exhaustive multi-echelon closed-loop supply chain (CLSC) network. This network functions within uncertainty, and the model optimizes three different objectives. The first objective function maximizes the network's profit; the second objective function minimizes network emissions. The last objective function maximizes job positions created by the network. Optimizing three contradicting objectives is a problem, so an augmented epsilon constraint method is applied to improve the model. Given the rise of fast fashion in developed countries, this model is used in the clothing industry in Montreal, Canada. The model includes three scenarios over five years with two types of products. The result shows the attractiveness of such a network for companies looking for profit, sustainability, and entrepreneurship in the garment industry.

Suggested Citation

  • Erfan Shafiee Roudbari & S. M. T. Fatemi Ghomi & Ursula Eicker, 2024. "Designing a multi-objective closed-loop supply chain: a two-stage stochastic programming, method applied to the garment industry in Montréal, Canada," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 6131-6162, March.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:3:d:10.1007_s10668-023-02953-3
    DOI: 10.1007/s10668-023-02953-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-02953-3
    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/s10668-023-02953-3?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. 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.
    2. Ayvaz, Berk & Bolat, Bersam & Aydın, Nezir, 2015. "Stochastic reverse logistics network design for waste of electrical and electronic equipment," Resources, Conservation & Recycling, Elsevier, vol. 104(PB), pages 391-404.
    3. M. Boronoos & M. Mousazadeh & S. Ali Torabi, 2021. "A robust mixed flexible-possibilistic programming approach for multi-objective closed-loop green supply chain network design," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 3368-3395, March.
    4. Erdogan, Nuh & Pamucar, Dragan & Kucuksari, Sadik & Deveci, Muhammet, 2021. "An integrated multi-objective optimization and multi-criteria decision-making model for optimal planning of workplace charging stations," Applied Energy, Elsevier, vol. 304(C).
    5. 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.
    6. 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.
    7. Fleischmann, Mortiz & Krikke, Hans Ronald & Dekker, Rommert & Flapper, Simme Douwe P., 2000. "A characterisation of logistics networks for product recovery," Omega, Elsevier, vol. 28(6), pages 653-666, December.
    8. Diabat, Ali & Jebali, Aida, 2021. "Multi-product and multi-period closed loop supply chain network design under take-back legislation," International Journal of Production Economics, Elsevier, vol. 231(C).
    9. Dragan Pamucar & Muhammet Deveci & Ilgin Gokasar & Milena Popovic, 2022. "Fuzzy Hamacher WASPAS decision-making model for advantage prioritization of sustainable supply chain of electric ferry implementation in public transportation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 7138-7177, May.
    10. K. Nageswara Reddy & Akhilesh Kumar & Erica E. F. Ballantyne, 2019. "A three-phase heuristic approach for reverse logistics network design incorporating carbon footprint," International Journal of Production Research, Taylor & Francis Journals, vol. 57(19), pages 6090-6114, October.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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.
    3. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).
    4. Rui Li & Xin Chen, 2022. "Reverse Logistics Network Design under Disruption Risk for Third-Party Logistics Providers," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    5. 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).
    6. Vahab Vahdat & Mohammad Ali Vahdatzad, 2017. "Accelerated Benders’ Decomposition for Integrated Forward/Reverse Logistics Network Design under Uncertainty," Logistics, MDPI, vol. 1(2), pages 1-21, December.
    7. Salehi-Amiri, Amirhossein & Zahedi, Ali & Akbapour, Navid & Hajiaghaei-Keshteli, Mostafa, 2021. "Designing a sustainable closed-loop supply chain network for walnut industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    8. Guitao Zhang & Xiao Zhang & Hao Sun & Xinyu Zhao, 2021. "Three-Echelon Closed-Loop Supply Chain Network Equilibrium under Cap-and-Trade Regulation," Sustainability, MDPI, vol. 13(11), pages 1-26, June.
    9. Chunlin Xin & Jie Wang & Ziping Wang & Chia-Huei Wu & Muhammad Nawaz & Sang-Bing Tsai, 2022. "Reverse logistics research of municipal hazardous waste: a literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1495-1531, February.
    10. Dong Li & Jose M. Cruz & Ke Ke, 2025. "Closed-loop supply chain network model with recycling, re-manufacturing, refurbishing, and corporate social responsibility," Annals of Operations Research, Springer, vol. 345(1), pages 247-275, February.
    11. Hua Ke & Yong Wu & Hu Huang, 2018. "Competitive Pricing and Remanufacturing Problem in an Uncertain Closed-Loop Supply Chain with Risk-Sensitive Retailers," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-21, February.
    12. 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.
    13. 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.
    14. Ali Fallahi & Seyed Alireza Mousavian Anaraki & Hadi Mokhtari & Seyed Taghi Akhavan Niaki, 2024. "Blood plasma supply chain planning to respond COVID-19 pandemic: a case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 1965-2016, January.
    15. Hao Guo & Ying Zhang & Chunnan Zhang & Yu Liu & Yuan Zhou, 2020. "Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market," Annals of Operations Research, Springer, vol. 291(1), pages 361-386, August.
    16. Peng Li & Di Wu, 2021. "A Multi-Echelon Network Design in a Dual-Channel Reverse Supply Chain Considering Consumer Preference," IJERPH, MDPI, vol. 18(9), pages 1-24, April.
    17. Kalogerakis, Katharina & Drabe, Viktoria & Paramasivam, Mugundan & Herstatt, Cornelius, 2015. "Closed-Loop Supply Chains for Cradle to Cradle Products," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Sustainability in Logistics and Supply Chain Management: New Designs and Strategies. Proceedings of the Hamburg International Conference of Logistics , volume 21, pages 3-34, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    18. 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.
    19. 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.
    20. Hao Yu & Wei Deng Solvang, 2016. "A Stochastic Programming Approach with Improved Multi-Criteria Scenario-Based Solution Method for Sustainable Reverse Logistics Design of Waste Electrical and Electronic Equipment (WEEE)," Sustainability, MDPI, vol. 8(12), pages 1-28, December.

    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:endesu:v:26:y:2024:i:3:d:10.1007_s10668-023-02953-3. 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.