Designing a mathematical model and solution for a circular economy-based closed-loop supply chain in semiconductor materials, focusing on microchips and motherboards

Abstract

As environmental concerns escalate and societal expectations evolve, the imperative for sustainable practices within supply chain management becomes increasingly evident. Closed- oop Supply Chain (CLSC) emerges as a pivotal strategy, aiming to integrate environmental sustainability with economic efficiency. This research addresses the pressing need for nnovative solutions in the semiconductor industry, focusing on microchips and motherboards, where the traditional linear supply chain odel falls short in mitigating environmental impact and demand fulfillment. This study pioneers the development of a CLSC networking framework explicitly tailored for semiconductor products. A comprehensive multiperiod multivariable mathematical model is proposed for extraction and manufacturing, as well as customer delivery, collection, recycling, and reintegration.This model pursues a bi-objective: minimizing the total costs of the network and reducing greenhouse gases, particularly the Global Warming Potential (GWP), thus advancing economic and environmental sustainability. Utilizing the General Algebraic Modeling System (GAMS) with Mixed-Integer Programming (MIP), the proposed model is solved, providing actionable insights for sustainable supply chain management. Moreover, a case study in Mexico offers practical application and further explains the model's efficacy. Finally, managerial insights are derived through an LP-metric Method, enabling a comparative analysis of the dual objective functions. This facilitates informed decision-making, emphasizing integrating economic and environmental considerations in supply chain management strategies. In conclusion, this research contributes to the advancement of sustainable supply chain practices within the semiconductor industry, offering a comprehensive framework for decision-makers to navigate the complexities of modern supply chain management.