Integrating Deep Learning Demand Forecasting with Multi-Objective Optimization for Circular Coffee Supply Chains: A Data-Driven Framework for Cost, Emissions, and Freshness Management
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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.