An Integrated Decision Making Model for Supplier Selection and Network Optimization

Abstract

Increase in product flow to manufacturers due to government regulations and customers' environmental awareness has required an effective product recovery network design which known as the closed loop supply chain (CLSC). An effective CSLC management needs strategic decision-making regarding supplier selection and order allocations beside network design. Therefore, this paper aims to optimize supplier selection, order allocation and CLSC network configuration, simultaneously. In this study, a CLSC network managing by a company that includes manufacturer, distributer, retailer, collection and recovery centers is examined. This research proposes an integrated approach to select the best suppliers using AHP and COPRAS methods and optimize CLSC network configuration. It is modeled as a mixed-integer linear programming model that maximize total profit of CLSC and importance weights of suppliers.