A Two Stage Stochastic Approach For Closed Loop Supply Chain Design Under Uncertainty: A Case Study Of Coca Cola Beverages Vietnam.

Abstract

Under the context of circular economy, FMCG industry has reached the threshold of billions of products sold every day, the direct results of which is an alarming rate of packaging waste. With the aim of seeking solutions for package recycling industry, this thesis proposed a number of initiatives to design a closed loop supply chain model. Based on the results of a customercentric survey, this thesis utilized Analytic Hierarchy Process (AHP) to evaluate initiatives and decide the preferred solutions to implement. A two-stage stochastic mixed integer linear programming (SMILP) model was formulated, in which the strategic decisions, including location and allocation, were determined with the objectives of minimizing costs and emissions. The results given by the model are not only feasible but also optimal, and a sensitivity analysis was conducted to investigate the relationship between elements in the model. This thesis could greatly contribute to FMCG, recycling industry, and governments pursuing sustainable standards. Long computation time and single period are the limitations of this model, however, they could be considered as rooms for further research to improve algorithms of optimization, as well as strategies or policies to gain customers’ interaction under the fluctuations of market in the near future.