Multi-Objective Optimization for Economic and Environmental Sustainability in Apparel E-commerce Reverse Logistics

Abstract

In the realm of supply chains, the necessity of a robust reverse logistics network is paramount. While substantial efforts have been directed towards enhancing forward logistics, the domain of reverse logistics remains underdeveloped. This article presents an approach that centers on the formulation of a reverse logistics network for an Indian e-commerce company specializing in apparel sales. Through the construction of single and multi-objective integer programs, the aim is to simultaneously mitigate economic costs and environmental repercussions. To tactfully address environmental concerns while maintaining cost efficiency, different network designs are proposed via the utilization of multi-objective Integer programs, solved using IBM ILOG CPLEX Optimization Studio an optimization software based upon simplex algorithm. The Environmental-Cost-Efficiency (ECE) framework is used to evaluate the multiple network designs. Scrutinizing the intricate equilibrium between costs and ecological implications, the study ultimately identifies an optimized reverse logistics network that yields maximal returns on investment in terms of environmental impact reduction. This comprehensive exploration of the cost-environment trade-off offers valuable guidance to similar organizations aiming to prudently minimize ecological footprints without compromising financial viability. Just as the reverse logistics network is vital within supply chains, this article underscores the potential of its strategic enhancement in driving eco-friendly and economically efficient practices.

Keywords

• e-commerce
• reverse logistics
• integer programming
• multi-objective optimization