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Abstract Modern industries use advanced technological solutions to efficiently manage waste and increase the sustainability of supply chain (SC) networks. Technologies in SC networks can achieve this by establishing a link between circular economy principles and Industry 4.0. Therefore, in this study, for the first time, a novel bi‐objective mixed‐integer linear programming model is developed to design a sustainable SC network by considering circular economy practices, the Internet of Things (IoT) technology, and the location‐routing problem with a simultaneous pickup‐and‐delivery (P&D) strategy in the electric vehicle (EV) battery industry. The proposed model locates distribution and recycling centers and considers the routing problem with the P&D strategy between the distribution centers and service providers. By applying the augmented epsilon‐constraint method, a balance is established between minimizing total costs and carbon emissions, and a set of Pareto‐optimal solutions is provided. It should be noted that the P&D strategy reduces the total costs and carbon emissions, and the IoT technology provides conditions for designing a secure and traceable network. The performance of the proposed model is evaluated using data from an EV battery module manufacturing company in the Far East. A sensitivity analysis of the parameters related to operational costs, carbon emissions, and demand demonstrated the accuracy of the performance of the proposed model.
Sorooshian et al. (2024) studied this question.