A Multi-Objective MILP Model for Sustainable Closed-Loop Supply Chain Network Design: Evidence from the Wood–Plastic Composite Industry

Sahel Jebreili, Reza Babazadeh (), Saeed Fazayeli, Mehdi A. Kamran and Amir Reza Gharibi
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Sahel Jebreili: Department of Industrial Engineering, Faculty of Engineering, Urmia University, Urmia 5756151818, Iran
Reza Babazadeh: Department of Industrial Engineering, Faculty of Engineering, Urmia University, Urmia 5756151818, Iran
Saeed Fazayeli: Department of Industrial Engineering, Faculty of Engineering, Urmia University, Urmia 5756151818, Iran
Mehdi A. Kamran: Department of Logistics, Tourism, and Services Management, German University of Technology in Oman, P.O. Box 1816, Muscat PC 130, Oman
Amir Reza Gharibi: Department of Industrial Engineering, Faculty of Engineering, Urmia University, Urmia 5756151818, Iran

Mathematics, 2025, vol. 13, issue 21, 1-21

Abstract: Environmental concerns and the increasing scarcity of resources force decision makers in the supply chain to consider reuse and re-production. Closed loop supply chain is a fundamental concept that has attracted the attention of many researchers due to its profitability for businesses as well as its positive environmental and social effects. Closed-loop supply chains and sustainability dimensions are complementary because of their mutual effects. This paper develops a mathematical model to design a sustainable closed-loop supply chain network in the wood–plastic composite industry. Due to the nature of the problem considered, a mixed-integer linear programming method is utilized. The proposed model is a multi-objective model, and the Lp-metric method is used to solve it. The proposed model is applied in a real case in Iran. The proposed model identified 17 optimal provinces for manufacturing centers, 15 for reuse centers, and 9 for reproduction centers. Verification and validation of the proposed model illustrate its capability in real world implications.

Keywords: closed-loop supply chain; sustainability; circular economy; optimization; wooden-plastic composite (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2025
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