Presenting a circular supply chain optimization model under uncertainty: the case of MDF industry

Abstract

The circular supply chain includes return processes and additional value intends to reduce the waste of resources and improve the efficiency, it plays an important role in reducing costs and increasing the level of sustainability of supply chains. Therefore, in the current research, a multi-objective, multi-level circular supply chain optimization model was presented in in uncertain conditions, which minimizes system costs and environmental impact and maximizes social responsibility. In order to face the uncertainty in demand, a scenario-based approach has been used. Then, the multi-objective model was converted into a single-objective model using the enhanced epsilon constraint method and solved with Gams software. The data of an active company in the MDF industry has been used to examine the application of the proposed model. The results of sensitivity analysis carried out on some important parameters showed that paying attention to the maximum number allowed for the establishment of collection and recycling centers has a significant impact on the costs and environmental effects in the system.

Keywords

• circular supply chain
• uncertainty
• robust optimization
• augmented &epsilon
• -constraint
• demand