A robust optimization model for green supplier selection and order allocation in a closed-loop supply chain considering cap-and-trade mechanism

Due to increasing air pollution, which is a consequence of the environmental effects production in various industries, green supply chain management (GSCM) has attracted attention both scholars and practitioners. Green supplier selection an important problem GSCM seeks satisfy firm’s goals as well its economic targets. In this paper, for first time, considering non-green evaluation criteria closed-loop studied, cap-and-trade mechanism way controlling pollution caused by manufacturers proposed. To solve particular problem, we propose multi-objective robust optimization (RO) model. This specific model effective approach handle uncertainty. A numerical example using randomly generated data, accompanied subsequent discussion proposed approach, deployed validate The results prove that developed able effectively enhance decision-making process experts. By illustrating trade-off robustness between solutions, effect deviation penalty on closeness achieved solution, show how firms can make optimal decisions when assigning parameters. Furthermore, analyses decreasing allowance amount (cap) prices system escalate firms’ costs, but lower carbon released. Finally, better solution terms total utility compared penalty-based range allowance.