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A Multi-Product, Single Period Sustainable Closed-Loop Supply Chain Network Design: A Scenario-Based Stochastic Optimization Approach Ehichoya, Martins; Osagiede , Augustine Aideyan
Journal of Entrepreneurship & Business Vol. 6 No. 3 (2025): Journal of Entrepreneurship and Business (October)
Publisher : Program MM Universitas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24123/jeb.v6i3.7856

Abstract

Purpose: This study examined the optimization of a stochastic sustainable closed-loop supply chain network for multi-product, single-period operations in a beverage company in Benin City, Nigeria, with a focus on five beverage products (Coke, Fanta, Sprite, Big Cola, and Eva). Method: The research employed a scenario-based stochastic mixed integer linear programming (SMILP) modeling approach to address demand uncertainties while minimizing costs and environmental impact. The network integrates forward and reverse logistics, including manufacturing, warehousing, retailing, disposal, recycling, recovery, redistribution, and remanufacturing stages. Result: Key findings reveal optimal product allocation scenarios for each product, demonstrating significant cost savings through remanufacturing and recycling. For instance, 94-100% of PET bottles were recovered and reused, reducing reliance on virgin materials and lowering production costs. The total environmental impact was quantified at 481,360 kg of CO₂, with variations across products due to differences in recycling efficiency and reverse logistics costs. The total network cost was optimized to N144,315,000, balancing economic and sustainability objectives. The study highlights the viability of closed-loop supply chains in emerging markets, emphasizing the role of stochastic optimization in managing demand variability. Practical implications include strategies for enhancing resource efficiency, reducing waste, and improving circular economy practices in the beverage industry.