Sustainable and optimal design of Chinese herbal medicine supply chain network based on risk dynamic regulation mechanism

Abstract We propose a robust fuzzy design model for a sustainable closed-loop supply chain network. The model is based on a risk dynamic regulation mechanism. In this way, we can solve the problem of sudden disruptions and uncertain demand in the supply chain of Chinese herbal medicines. We also develop a hybrid algorithm solution to solve the model and design a resilient supply chain network. The specific steps are as follows: (1) The risk dynamic regulation mechanism is created with strong risk resistance by considering the information sharing platform, facility defense, drying station scheduling, safety stock, and shared inventory. (2) Based on the dynamic risk regulation mechanism, we establish a sustainable Chinese herbal medicine supply chain network design model. Then, we use the robust fuzzy method and the epsilon constraint to deal with the uncertainty and integrate the model. (3) We introduce opposition-based learning, cosine convergence factor, and levy flight to the original Whale and Grey wolf algorithms to obtain the Hybrid algorithm, which is used to solve the processed model. The results show the model and algorithm proposed in this paper have strong applicability and advantages in designing closed-loop supply chain networks for Chinese herbal medicine and provide references for relevant decision-makers.