Optimizing the Logistics Costs of the Organization’s Services

The closed-loop supply chain network (CLSC) includes all operations related to recyclable products. The CLSC consists of vendors, producers, warehouses, retail stores, clients, garbage dumps, and recycling facilities. Understandably, the manufacturer has a crucial function to play in this logistical ecosystem. After providing consulting services for several manufacturers in the CLSC, we have helped avoid issues like inadequate manufacturing capacity, high transportation costs, longer delivery times, and higher production prices. This study presents a mathematical planning model for creating a closed-loop supply chain system that includes several electronics manufacturers. The objective function of this optimization model minimizes the amount of costs as well as optimizes (maximizes) the amount of affordable and efficient transportation. General Algebraic Modeling Language software (GAMS) is used to solve this optimization model. Our simulated and realworld results demonstrate that the number of production decreases as demand decreases. Thus, given that the objective function of manufacturers is to minimize costs, whenever demand tends to zero, production does not occur. In such cases, shortage of products (the model’s shortage variable) also approaches zero, and the value of the objective function (i.e. minimizing costs) will also approach zero. In this paradigm, rising demand generally does not increase the value of the objective function. Our model also demonstrates that increasing the production capacity does not worsen the value of the objective function. Building upon an assumed multiproduct model, this study identifies a method to increase the efficiency of the proposed supply chain.