Social-Economic and Environment Impacts for a Fish Reverse Supply Chain: A Mixed Integer Linear Optimization Approach

Abstract

Abstract This study contributes to the fish reverse supply chain due to lack of social-economic and environmental impacts. This study aims to develop a mathematical model for fish reverse supply chain with multi-echelons, multi-products, and multi-periods considering the social-economic (job opportunities and profit) and environmental (carbon emissions) impacts through mixed-integer linear programming (MILP). The proposed model provides social-economic insight for governments to understand the increasing of job opportunities if fish gelatin and powder industries can process fish waste (fish bones and skin). The managerial insight for fish processing industries to increase profit and reduce carbon emission in production, transportation, and warehouse. A sensitivity analysis is illustrated to show that the supply of raw fish, selling prices, and purchasing costs are sensitive to total profit, carbon emissions, and job opportunities. The results show that the total profit for five months is IDR 21,779,378,445 and the largest contribution to the total cost is the costs of purchasing, emission costs, and production costs, which are 44.04%; 23.7%; and 18.2%, respectively.