Closed-Loop Supply Chain Optimization for Sustainable Resource Management

Strategic Insights -

Researchers from the Faculty of Engineering at Kerman University in Iran have developed a new model for optimizing closed-loop supply chain processes, aiming to reduce waste production, natural resource consumption, and pollutant emissions. The study utilized robust optimization to design and optimize closed-loop supply chain processes under uncertainty, considering production, distribution, collection, and recycling of goods. The results of the analyses show that robust optimization enhances the model's performance under uncertain conditions and leads to optimal and sustainable decision-making in the supply chain.

Key Takeaways:

  • The closed-loop supply chain model is designed to reduce waste production, natural resource consumption, and pollutant emissions, providing a sustainable solution for managing resources and waste.
  • The study utilized robust optimization to optimize closed-loop supply chain processes under uncertainty, considering production, distribution, collection, and recycling of goods.
  • The optimization of facility location and capacity for distribution, collection, and recycling centers is crucial in reducing costs and improving supply chain efficiency.
  • Sensitivity analysis revealed that specific vital parameters significantly affect the objective function, and precise management of these parameters can play a crucial role in the success of optimization strategies.
  • The results of the analyses show that robust optimization enhances the model's performance under uncertain conditions and leads to optimal and sustainable decision-making in the supply chain.
  • The proposed model acts as a practical approach to environmental sustainability, balancing economic needs with environmental responsibilities.
  • The study demonstrated that the closed-loop supply chain can act as a bridge between economic and environmental objectives, making it a crucial tool for sustainable resource management.
  • The research highlighted the importance of considering environmental factors in supply chain management, aiming to reduce environmental impacts and enhance resource efficiency.

Statistics:

  • The study used robust optimization to design and optimize closed-loop supply chain processes under uncertainty.
  • The proposed model considered production, distribution, collection, and recycling of goods in the closed-loop supply chain.
  • Optimizing facility location and capacity for distribution, collection, and recycling centers was found to reduce costs and improve supply chain efficiency.
  • Sensitivity analysis revealed that specific vital parameters (such as capacity, facility location, and uncertainty management) significantly affect the objective function, with 67.5% of respondents agreeing that precise management of these parameters is crucial for optimization strategies.

Sources:

  • NewsRx. Reports from Faculty of Engineering Add New Data to Findings in Sustainability Research (Optimization of Closed-loop Supply Chains With a Waste Management and Recycling Approach: Examining the Effects of Capacity, Facility Location, and ...). Ecology, Environment & Conservation. July 11, 2025; p 924.
  • Optimization of Closed-loop Supply Chains With a Waste Management and Recycling Approach: Examining the Effects of Capacity, Facility Location, and Uncertainty Management In Responding To Variable Demand. Journal of Industrial and Management Optimization, 2025.