A multi-objective integrated supplier selection-production-distribution model for re-furbished products: Towards a circular economy

Re-furbishing is enabling technology for business models based on a circular economy. A company produces new products in the first phase and uses returned products to offer re-manufactured or re-furbished products in the second phase creating sustainable development. This paper aims to present an integrated supplier selectiondistribution model of refurbished products. The three objectives of the given model are minimizing cost, minimizing carbon footprints and maximizing revenue generated from the process. The model starts with allocating the orders of re-furbishing essentials to selected suppliers and then generating an optimal distribution pattern of an integrated mix of returned products and re-furbishing essentials.Goal Programming is used to generate the results. Results show that the presented model optimally allocates orders to different suppliers and creates distribution patterns between intermediaries maintaining the flow of the supply chain This study is helpful for decision-makers to find solutions to supplier selection, order allocation, and product distribution problems as an integrated approach using a single model. Regarding the literature available and to the best of author's knowledge, this is the first attempt to develop an integrated model selecting the suppliers at one hand while creating the distribution patterns on the other hand under the operational constraints satisfying the objectives of cost and carbon footprints minimization and profit maximization. The model is helpful in achieving economical and social benefits by minimizing the cost and maximizing the revenue as well as environmental sustainability by minimizing the carbon foot-prints.