A robust optimization model for the design of a cardboard closed-loop supply chain

Environmental issues, legal requirements, and economic benefits of recycling activities lead to the development of reverse logistics operations and waste management. The current research considers a closed-loop supply chain for a cardboard recycling network including multiple suppliers and production stages. A mixed integer linear programming model is proposed to optimize the paper and cardboard recycling network, and a robust optimization approach is utilized to deal with demand uncertainty in this network. The model maximizes the total profit. It considers the operation, transportation, purchasing and holding inventory costs as well. Moreover, to illustrate the application of the proposed model, a real-world cardboard closed-loop supply chain design is investigated. The proposed model considers the option to open a new recycling center in the current network. The proposed model determines the optimal quantities of the waste paper, paper, sheet and cardboard that flow in this network. Finally, the computational analysis indicated that the proposed model provides efficient solutions for the studied cardboard closed-loop network. (C) 2017 Elsevier Ltd. All rights reserved.