A Closed-loop Supply Chain Network Design Problem in Copper Industry

Document Type : Original Article


1 Department of Industrial Engineering, Yazd University, Yazd, Iran

2 Department of Industrial Engineering, University of Science and Technology of Mazandaran, Behshahr, Iran


Undoubtedly, metals are the basis of the sustainable development of all human societies. In the last century, the role of copper, as the third most widely used metal, after steel and aluminum, has been crucial. Copper is a recyclable metal. It has many applications such as industrial electricity, plumping, wiring, electronic equipment, transportation, and infrastructure. Today, with the growth of the industry in societies, the demand for copper has increased. This motivated us to study its supply chain network design firstly. To the best of our knowledge, there is no research reported about copper supply chain network design. This paper aims to maximize the profit of the copper closed-loop supply chain. We formulate this network design problem as a Mixed Integer Programming model. The model is considered as single-objective and multi-product. The exact solution of the model is found by using GAMS software. Sensitivity analysis results provide useful results that managers can use them in decisions.


  1. Zhang, L., Cai, Z., Yang, J., Yuan, Z. and Chen, Y., "The future of copper in China—A perspective based on analysis of copper flows and stocks", Science of the Total Environment, Vol. 536, (2015), 142-149, https://doi.org/10.1016/j.scitotenv.2015.07.021.
  2. Elshkaki, A., Graedel, T. E., Ciacci, L. and Reck, B. K., "Copper demand, supply, and associated energy use to 2050", Global Environmental Change, Vol. 39, (2016), 305-315, https://doi.org/10.1016/j.gloenvcha.2016.06.006.‏
  3. Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., and Shankar, R., "Designing and managing the supply chain: concepts, strategies and case studies. Tata McGraw-Hill Education", (2008).
  4. Fleischmann, M., Bloemhof-Ruwaard, J. M., Dekker, R., Van der Laan, E., Van Nunen, J. A. and Van Wassenhove, L. N., "Quantitative models for reverse logistics: A review", European Journal of Operational Research, Vol. 103, No. 1, (1997), 1-17, https://doi.org/10.1016/S0377-2217(97)00230-0.
  5. Cheraghalipour, A., Paydar, M. M. and Hajiaghaei-Keshteli, M., "A bi-objective optimization for citrus closed-loop supply chain using Pareto-based algorithms", Applied Soft Computing, Vol. 69, (2018), 33-59, https://doi.org/10.1016/j.asoc.2018.04.022.
  6. Gholipoor, A., Paydar, M. M. and Safaei, A. S., "A faucet closed-loop supply chain network design considering used faucet exchange plan", Journal of Cleaner Production, Vol. 235, (2019), 503-518, https://doi.org/10.1016/j.jclepro.2019.06.346 .
  7. Zohal, M. and Soleimani, H., "Developing an ant colony approach for green closed-loop supply chain network design: a case study in gold industry", Journal of Cleaner Production, Vol. 133, (2016), 314-337,
  8. Sahebjamnia, N., Fathollahi-Fard, A. M. and Hajiaghaei-Keshteli, M., "Sustainable tire closed-loop supply chain network design: Hybrid metaheuristic algorithms for large-scale networks", Journal of Cleaner Production, Vol. 196, (2018), 273-296, https://doi.org/10.1016/j.jclepro.2018.05.245.
  9. Paydar, M. M., Babaveisi, V. and Safaei, A. S., "An engine oil closed-loop supply chain design considering collection risk", Computers & Chemical Engineering, Vol. 104, (2017), 38-55, https://doi.org/10.1016/j.compchemeng.2017.04.005.
  10. Yusupkhodjaev, A. A., Khojiev, S. T., Valiev, X. R., Saidova, M. S. and Omonkhonov, O. X., "Application of Physical and Chemical Methods for Processing Slags of Copper Production," International Journal of Advanced Research in Science, Engineering and Technology, Vol. 6, No. 1, (2019), 7957.
  11. Moreno-Leiva, S., Haas, J., Junne, T., Valencia, F., Godin, H., Kracht, W., Nowak, W. and Eltrop, L, "Renewable energy in copper production: A review on systems design and methodological approaches", Journal of Cleaner Production, Vol. 246, (2020), 118978, https://doi.org/10.1016/j.jclepro.2019.118978.
  12. de Solminihac, H., Gonzales, L. E. and Cerda, R., "Copper mining productivity: lessons from Chile", Journal of Policy Modeling, Vol. 40, No. 1, (2018), 182-193, https://doi.org/10.1016/j.jpolmod.2017.09.001.
  13. Jak, E., Shishin, D., Hawker, W., Vaughan, J. and Hayes, P. C., "Improved copper smelter and converter productivity through the use of a novel high-grade feed", In Extraction 2018, 265-271, Springer, Cham, (2018), https://doi.org/10.1007/978-3-319-95022-8_21.
  14. Valderrama, C. V., Santibanez-González, E., Pimentel, B., Candia-Véjar, A. and Canales-Bustos, L., "Designing an environmental supply chain network in the mining industry to reduce carbon emissions", Journal of Cleaner Production, Vol. 254, (2020), 119688, https://doi.org/10.1016/j.jclepro.2019.119688.
  15. Pishvaee, M. S., Kianfar, K. and Karimi, B., "Reverse logistics network design using simulated annealing", The International Journal of Advanced Manufacturing Technology, Vol. 47, No. (1-4), (2010), 269-281, https://doi.org/10.1007/s00170-009-2194-5.
  16. Kannan, D., Diabat, A., Alrefaei, M., Govindan, K. and Yong, G., "A carbon footprint based reverse logistics network design model", Resources, Conservation and Recycling, Vol. 67, (2012), 75-79, https://doi.org/10.1016/j.resconrec.2012.03.005.
  17. Zadeh, A. S., Sahraeian, R. and Homayouni, S. M., "A dynamic multi-commodity inventory and facility location problem in steel supply chain network design", The International Journal of Advanced Manufacturing Technology, Vol. 70, No. (5-8), (2014), 1267-1282, https://doi.org/10.1007/s00170-013-5358-2.
  18. Fallah-Tafti, A. L., Sahraeian, R., Tavakkoli-Moghaddam, R. and Moeinipour, M., "An interactive possibilistic programming approach for a multi-objective closed-loop supply chain network under uncertainty", International Journal of Systems Science, Vol. 45, No. 3, (2014), 283-299, https://doi.org/10.1080/00207721.2012.720296.
  19. Ahmadi Yazdi, A., "A two stage stochastic programming model of the price decision problem in the dual-channel closed-loop supply chain", International Journal of Engineering, Transactions B: Applications, Vol. 28, No. 5, (2015), 738-745, doi: 10.5829/idosi.ije.2015.28.05b.12.
  20. Talaei, M., Moghaddam, B. F., Pishvaee, M. S., Bozorgi-Amiri, A. and Gholamnejad, S., "A robust fuzzy optimization model for carbon-efficient closed-loop supply chain network design problem: a numerical illustration in electronics industry", Journal of Cleaner Production, Vol. 113, (2016), 662-673, https://doi.org/10.1016/j.jclepro.2015.10.074.
  21. Jalali, G., Tavakkoli-Moghaddam, R., Ghomi-Avili, M. and Jabbarzadeh, A., "A network design model for a resilient closed-loop supply chain with lateral transhipment", International Journal of Engineering, Vol. 30, No. 3, (2017), 374-383, doi: 10.5829/idosi.ije.2017.30.03c.07.
  22. Seifbarghi, M., Bozorgi-Amiri, A., Rahmani-Ahranjani, A. and Najafi, E., "Managing environmentally conscious in designing closed-loop supply chain for the paper industry", International Journal of Engineering, Vol. 30, No. 7, (2017), 1038-1047, doi: 10.5829/ije.2017.30.07a.13.
  23. Zegordi, S. H., Hosseinzadeh, A., Nahavandi, N. and Sadeghi Rad, R., "An integrated closed-loop supply chain configuration model and supplier selection based on offered discount policies", International Journal of Engineering, Vol. 31, No. 3, (2018), 440-449, doi: 10.5829/ije.2018.31.03c.06.
  24. Leins, S., Kesselring, R. and Schulz, Y., "Valueworks: effects of financialization along the copper value chain" SNIS Working Papers, (2019).
  25. Sherafati, M., Bashiri, M., Tavakkoli-Moghaddam, R. and Pishvaee, M. S., "Supply chain network design considering sustainable development paradigm: A case study in cable industry", Journal of Cleaner Production, Vol. 234, (2019), 366-380, https://doi.org/10.1016/j.jclepro.2019.06.095.
  26. Mardan, E., Govindan, K., Mina, H. and Gholami-Zanjani, S. M., "An accelerated benders decomposition algorithm for a bi-objective green closed loop supply chain network design problem", Journal of Cleaner Production, Vol. 235, (2019), 1499-1514, https://doi.org/10.1016/j.jclepro.2019.06.187.
  27. Umar, Z., Shahzad, S. J. H. and Kenourgios, D., "Hedging US metals & mining Industry's credit risk with industrial and precious metals", Resources Policy, Vol. 63, (2019), 101472, https://doi.org/10.1016/j.resourpol.2019.101472.
  28. Kuipers, K. J., van Oers, L. F., Verboon, M. and van der Voet, E., "Assessing environmental implications associated with global copper demand and supply scenarios from 2010 to 2050", Global Environmental Change, Vol. 49, (2018), 106-115, https://doi.org/10.1016/j.gloenvcha.2018.02.008.