A closed-loop supply chain network in the edible oil industry using a novel robust stochastic-possibilistic programming

Abstract

In recent years, the complexity of the environment, the intense competition of organizations, the pressure of governments on producers to manage waste products, environmental pressures and most importantly, the benefits of recycling products have added to the importance of designing a closed loop supply chain network. Also, the existence of inherent uncertainties in the input parameters is another important factor that the lack of attention them can affect the strategic, tactical and operational decisions of organizations. Given these reasons, this research aims to design a multi-product and multi period closed loop supply chain network model in uncertainty conditions. To this aim, first a mixed-integer linear programming model is proposed to minimize supply chain costs. Then, for coping with hybrid uncertain parameters effectively, randomness and epistemic uncertainty, a novel robust stochastic-possibilistic programming (RSPP) approach is proposed. Furthermore, several varieties of RSPP models are developed and their differences, weaknesses, strengths and the most suitable conditions for being used are discussed. Finally, usefulness and applicability of the RSPP model are tested via the real case study in an edible oil industry.

Keywords

• edible oil supply chain
• closed loop supply chain
• possibilistic programming
• stochastic programming
• robust programming