Viable closed-loop supply chain network by considering robustness and risk as a circular economy

The viable closed-loop supply chain network (VCLSCND) is a new concept that integrates sustainability, resiliency, and agility into a circular economy. We suggest a hybrid robust stochastic optimization by minimizing the weighted expected, maximum, and entropic value at risk (EVaR) of the cost function for this problem. This form considers robustness against demand disruption. Finally, CLSC components are located, and quantity flows are determined in the automotive industry. The results show that the VCLSCND cost is less than not considering viability and has a - 0.44% gap. We analyze essential parameters. By increasing the conservative coefficient, confidence level, and the scale of the main model, decreasing the allowed maximum energy, the cost function, time solution, and energy consumption grow. We suggested applying the Fix-and-Optimize algorithm for producing an upper bound for large-scale. As can be seen, the gap between this algorithm and the main problem for cost, energy, and time solution is approximately 6.10%, - 8.28%, and 75.01%.

Automated summary

The viable closed-loop supply chain network is a new concept that integrates sustainability, resiliency, and agility into a circular economy. A hybrid robust stochastic optimization technique is proposed to minimize the cost function considering demand disruption. The results show that considering viability leads to cost reduction of 0.44%.