Sustainable Closed-Loop Supply Chain Network Design for Mercedes-Benz UK
Mixed-Integer Hybrid Model Optimising Cost, Environment, and Social Impact
Designed a generic closed-loop supply chain network (SCND) that simultaneously optimises cost, environmental impact, and social impact. The hybrid mixed-integer model handles real-world multi-echelon, multi-product, and multi-transportation complexities and was validated on an automotive SCND for Mercedes-Benz UK.
Key Results:
- Achieved a Pareto-optimal configuration balancing all three sustainability pillars
- Identified network options that reduce overall cost without sacrificing environmental or social gains
- Demonstrated feasibility of integrating real multi-echelon, multi-product, and multi-transportation constraints
Technologies Used:
Challenge
Balance profitability with sustainability under strict environmental regulations. Improve social impact (jobs, community welfare) while managing costs. Design a closed-loop network for efficient returns, remanufacturing, and recycling. Account for real-world complexity: multi-echelon nodes, multi-product flows, multi-transportation modes.
Solution
Developed a mixed-integer hybrid SCND model for single-period planning. Applied a weighted-sum approach to balance cost, environmental, and social objectives. Solved with GAMS/CPLEX and practical constraints reflecting real automotive operations. Validated the model on Mercedes-Benz UK's automotive SCND.
Key Features
- Closed-loop design covering forward and reverse flows
- Multi-criteria optimisation across cost, environment, and social pillars
- Pareto-optimal solution set offering fair trade-off choices
- Scalable framework applicable to other complex industries