Integrating Deep Learning Demand Forecasting with Multi-Objective Optimization for Circular Coffee Supply Chains: A Data-Driven Framework for Cost, Emissions, and Freshness Management
Gerçek Budak, Faraz Gholamzadeh Gharehgheshlaghi, Melika Barjesteh Vaezi, Ahmad Gholizadeh Lonbar
Abstract
The coffee supply chain is one of the most complex agri-food networks, marked by geographically dispersed production, multi-tier coordination, and high sensitivity to quality and freshness. While sustainability and digitalization have gained attention, demand forecasting, optimization, and traceability are often treated separately. This study presents a two-phase integrated framework. First, a hybrid CNN-LSTM model is used for demand forecasting. On the public Coffee Chain Sales dataset with chronological 70/15/15 splitting, the model achieves MAE of 22.87 and R^2 of 0.90, outperforming the best deep learning benchmark by ~12% and classical methods by over 30%. In the second phase, the forecasted demand feeds a tri-objective mixed-integer linear programming (MILP) model that jointly minimizes cost, minimizes carbon emissions, and maximizes product freshness in a multi-period, multimodal, closed-loop supply chain with circular recovery. Freshness is modeled via exponential decay based on inventory age. Using the epsilon-constraint method, 25 Pareto solutions are obtained. Sensitivity and policy analyses show that balanced sustainability policies can reduce emissions by 22.4% with only a 9.9% cost increase while maintaining near-optimal freshness. Keywords: Coffee supply chain; Deep learning; Demand forecasting; Multi-objective optimization; Circular economy; CNN-LSTM; Mixed-integer linear programming.
Topics
Classified with taxonomy v2 on Sat, 5 Sept 2026.