Designing a closed loop supply chain network for engine oil in an uncertain environment: A case study in Behran Oil Company

The increase in demand for petroleum derivatives such as engine oil has contributed to not only the rapid and adequate response to them, but also attracting many managers and researchers to control their adverse environmental impacts. In this regard, this study unveils an optimization model to develop a closed loop supply chain network for engine oil in an uncertain environment. In the concerned model, in addition to addressing supply chain costs, adverse environmental effects are also minimized. To solve the proposed multi-objective model and acquire Pareto optimal solutions, the goal programming approach is deployed. The demand and amount of recyclable materials are considered to be imbued with uncertainty, which a robust optimization approach is devised to capture it. Likewise, new methods are taken into account to recycle engine oil, being capable of supporting both economic and environmental benefits. Lastly, a case study is utilized to evaluate and validate the presented model, through which outstanding management results are derived.