A Multi-Objective Model for Sustainable Reverse Logistics Networks in E-commerce

The development of e-commerce has increased the demand for efficient return management. This paper presents a multi-objective mixed-integer linear programming model designed to optimize reverse logistics in e-commerce. The first objective function minimizes total costs, calculated from warehouse rental cost, inventory cost, and transportation cost from collection sites to intermediate warehouses and from intermediate warehouses to region hubs. Furthermore, a number of job opportunities and training courses have been developed to maximize the second objective. We employ both conventional and augmented epsilon constraint methods with lexicographic optimization to generate a Pareto front solution. Subsequently, the elbow method is used to suggest the most suitable solution. The model is applied to optimize the return management for e-commerce in Vietnam, and insights are discussed. The results indicate that the model effectively generates solutions and comprehensively understands the trade-offs between the two sustainable objectives.