A stochastic risk-averse sustainable supply chain network design problem with quantity discount considering multiple sources of uncertainty

Sustainability in supply chain management is an inescapable and controversial issue due to government legislation and social responsibilities of the organizations. For that reason, a sustainable supply chain network design (SSND) has been recently developed as a means of dealing with environmental and social issues along with the economic aspect of a supply chain. On the other hand, considering uncertainty and risk aversion in the supply chain network design due to the volatility of the markets and the unavailability of sufficient information is inevitable. Thus, in this paper, a risk-averse sustainable multi-objective mathematical model is proposed in order to design and plan a network of the supply chain under uncertainty by incorporating Conditional Value at Risk (CVaR) into the basic configuration of the two-stage stochastic programming. In some other cases, many organizations offer some sort of discount to their customers so that they can compete with their rivals and enhance their accounts receivable. So, it seems ineluctable for companies to contemplate considering discount policies while making such strategic decisions for sustainability. Therefore, in this paper, we propose a mixed integer non-linear programming (MINLP) problem in order to consider discounts in the proposed model. Sensitivity analyses are also conducted on some important risk-aversion parameters in order to evaluate how these parameters affect the proposed mathematical model and the obtained Pareto solutions.