Closed supply network modelling for end-of-life ship remanufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prem Chhetri ◽  
Mahsa Javan Nikkhah ◽  
Hamed Soleimani ◽  
Shahrooz Shahparvari ◽  
Ashkan Shamlou
Keyword(s):  
Supply Chain ◽  
End Of Life ◽  
Closed Loop ◽  
Payback Period ◽  
Mixed Integer ◽  
Supply Chain Network ◽  
Supply Network ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Milp Model

PurposeThis paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL) ships.Design/methodology/approachExplanatory variables are used to estimate the number of EoL ships available in a closed-loop supply chain network. The estimated number of EoL ships is used as an input in the model and then it is solved by a mixed-integer linear programming (MILP) model of the closed-loop supply chain network to minimise the total logistic costs. A discounted payback period formula is developed to calculate the length of time to recoup an investment based on the investment's discounted cash flows. Existing ship wrecking industry clusters in the Western region of India are used as the case study to apply the proposed model.FindingsThe MILP model has optimised the total logistics costs of the closed-loop supply network and ascertained the optimal number and location of remanufacturing for building EoL ships. The capital and variable costs required for establishing and operating remanufacturing centres are computed. To remanufacture 30 ships a year, the discounted payback period of this project is estimated to be less than two years.Practical implicationsShip manufacturing businesses are yet to re-manufacture EoL ships, given high upfront capital expenditure and operational challenges. This study provides management insights into the costs and benefits of EoL ship remanufacturing; thus, informing the decision-makers to make strategic operational decisions.Originality/valueThe design of an optimal close loop supply chain network coupled with a Bayesian network approach and discounted payback period formula for the collection and remanufacturing of EoL ships provides a new integrated perspective to ship manufacturing.

A multi-objective model for sustainable closed-loop supply chain of perishable products under two carbon emission regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saman Esmaeilian ◽  
Dariush Mohamadi ◽  
Majid Esmaelian ◽  
Mostafa Ebrahimpour
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Life Cycle ◽  
Carbon Emission ◽  
Closed Loop ◽  
Perishable Products ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Trade Model

Purpose This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits. Design/methodology/approach The present study develops a mathematical model for a closed-loop supply chain network of perishable products so that considers the vital aspects of sustainability across the life cycle of the supply chain network. To evaluate carbon emissions, two different regulating policies are studied. Findings According to the obtained results, increasing the lifetime of the perishable products improves the incorporated objective function (IOF) in both the carbon cap-and-trade model and the model with a strict cap on carbon emission while the solving time increases in both models. Moreover, the computational efficiency of the carbon cap-and-trade model is higher than that of the model with a strict cap, but its value of the IOF is worse. Results indicate that efficient policies for carbon management will support planners to achieve sustainability in a cost-effectively manner. Originality/value This research proposes a mathematical model for the sustainable closed-loop supply chain of perishable products that applies the significant aspects of sustainability across the life cycle of the supply chain network. Regional economic value, regional development, unemployment rate and the number of job opportunities created in the regions are considered as the social dimension.

scholarly journals Competition and Integration in Closed-Loop Supply Chain Network with Variational Inequality

2012 ◽  
Vol 2012 ◽  
pp. 1-21 ◽  
Author(s):  
Gengui Zhou ◽  
Yuxiang Yang ◽  
Jian Cao
Keyword(s):  
Supply Chain ◽  
Variational Inequality ◽  
End Of Life ◽  
Closed Loop ◽  
New Products ◽  
Horizontal Merger ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Production Quantity ◽  
And Storage

A closed-loop supply chain network involves the manufactured and remanufactured homogeneous products. It comprises operation links to represent business activities including manufacturing/remanufacturing activities, treatment activities for EOL products, transportation activities, and storage activities, which are performed by the firms. Among all closed-loop supply chain problems, the horizontal merger of oligopolistic firms is so important and attracting to both businessman and researchers. In this paper, the interaction of the competitive firms prior to horizontal merger is analyzed. Three networks including prior to horizontal merger, postpartial merger, and complete merger are studied. Simultaneously, three economical models for these networks on different conditions of mergers are established and discussed. The variational inequality formulations are used for these three models, whose solutions give out the production quantity of new products, and remanufactured products, the product flows for new products, remanufactured products and end-of-life products at every path, the demand quantity, the recovery quantity of end-of-life products and the equilibrium prices. Finally, numerical examples are tested and illustrated for the proposed models.

Multi-objective robust optimization for multi-stage-multi-product agile closed-loop supply chain under uncertainty in the context of circular economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeid Jafarzadeh Ghoushchi ◽  
Iman Hushyar ◽  
Kamyar Sabri-Laghaie
Keyword(s):  
Supply Chain ◽  
Robust Optimization ◽  
Circular Economy ◽  
Closed Loop ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Multi Objective ◽  
Multi Stage ◽  
Proposed Model

PurposeA circular economy (CE) is an economic system that tries to eliminate waste and continually use resources. Due to growing environmental concerns, supply chain (SC) design should be based on the CE considerations. In addition, responding and satisfying customers are the challenges managers constantly encounter. This study aims to improve the design of an agile closed-loop supply chain (CLSC) from the CE point of view.Design/methodology/approachIn this research, a new multi-stage, multi-product and multi-period design of a CLSC network under uncertainty is proposed that aligns with the goals of CE and SC participants. Recycling of goods is an important part of the CLSC. Therefore, a multi-objective mixed-integer linear programming model (MILP) is proposed to formulate the problem. Besides, a robust counterpart of multi-objective MILP is offered based on robust optimization to cope with the uncertainty of parameters. Finally, the proposed model is solved using the e-constraint method.FindingsThe proposed model aims to provide the strategic choice of economic order to the suppliers and third-party logistic companies. The present study, which is carried out using a numerical example and sensitivity analysis, provides a robust model and solution methodology that are effective and applicable in CE-related problems.Practical implicationsThis study shows how all upstream and downstream units of the SC network must work integrated to meet customer needs considering the CE context.Originality/valueThe main goal of the CE is to optimize resources, reduce the use of raw materials, and revitalize waste by recycling. In this study, a comprehensive model that can consider both SC design and CE necessities is developed that considers all SC participants.

scholarly journals Designing a Sustainable Green Closed-Loop Supply Chain under Uncertainty and Various Capacity Levels

Logistics ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 20
Author(s):  
Mohsen Tehrani ◽  
Surendra M. Gupta
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Production Costs ◽  
Mixed Integer ◽  
Risk Level ◽  
Programming Approach ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Tire Industry ◽  
Hybrid Uncertainty

The ever-increasing concerns of the growth in the volume of waste tires and new strict government legislations to reduce the environmental impact of the end-of-life (EOL) tires have increased interest among companies to design a sustainable and efficient closed-loop supply-chain (CLSC) network. In the real world, the CLSC network design is subject to a variety of uncertainties, such as random and fuzzy (epistemic) uncertainties. Designing a reliable and environmentally cautious CLSC with consideration of risks and the uncertainty of the parameters in the network is necessary for a successful supply-chain network. This study proposes a sustainable and environmentally cautious closed-loop supply-chain network for the tire industry, by considering several recovery options, including retreading, recycling, and energy recovery. This study aims to design and develop a robust multi-objective, multi-product, multi-echelon, multi-cycle, multi-capacity, green closed-loop supply-chain network under hybrid uncertainty. There are two types of uncertainties associated with the parameters in the network. There is an uncertainty associated with the demand, which is expressed in some future scenarios according to the probability of their occurrences, as well as fuzzy-based uncertainty associated with return rates, retreading rates, recycling rates, procurement, and production costs, which are expressed with possibilistic distributions. In order to deal with this hybrid uncertainty, a robust fuzzy stochastic programming approach has been proposed, and the proposed mixed integer programming model is applied to a case study in the tire industry to validate the model. The result indicates the applicability of the proposed model and its efficiency to control the hybrid uncertainties and the risk level in the network.

Selection of Transportation Channels in Closed-Loop Supply Chain Using Meta-Heuristic Algorithm

2018 ◽  
Vol 11 (3) ◽  
pp. 64-86 ◽  
Author(s):  
Sonu Rajak ◽  
P. Parthiban ◽  
R. Dhanalakshmi
Keyword(s):  
Supply Chain ◽  
Environmental Impact ◽  
Closed Loop ◽  
Analytic Network Process ◽  
Network Design Problem ◽  
Mixed Integer ◽  
Fixed Cost ◽  
Closed Loop Supply Chain ◽  
Network Process ◽  
Milp Model

This article presents a closed-loop supply chain (CLSC) network design problem consisting of both forward and reverse material flows. Here, a four-echelon single-product system is introduced in which multiple transportation channels are considered between the nodes of each echelon. Each design is analyzed for the optimum cost, time and environmental impact which form objective functions. The problem is modeled as a tri-objective mixed integer linear programming (MILP) model. The cost objective aggregates the opening cost (fixed cost) and the variable costs in both forward and reverses material flow. The time objective considers the longest transportation time from plants to customers and reverse. Factors of environmental impact are categorized and weighed using an analytic network process (ANP) which forms the environmental objective function. A genetic algorithm (GA) has been applied as a solution methodology to solve the MILP model. Ultimately, a case problem is also used to illustrate the model developed and concluding remarks are made regarding the results.

Embedding risk in closed-loop supply chain network design

2017 ◽  
Vol 12 (3) ◽  
pp. 551-574 ◽  
Author(s):  
Surya Prakash ◽  
Gunjan Soni ◽  
Ajay Pal Singh Rathore
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Design Methodology ◽  
Closed Loop ◽  
Mitigation Strategies ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Manufacturing Firm ◽  
Content Type ◽  
Modeling Approach

Purpose The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and logistics operations. The modeling approach adopted aims at the embedding supply chain risks in a closed-loop supply chain (CLSC) network design process and suggests optimal supply chain configuration and risk mitigation strategies. Design/methodology/approach The method proposes a closed-loop supply chain network and identifies the network parameter and variables required for closing the loop. Mixed-integer-linear-programming-based mathematical modeling approach is used to formulate the research problem. The solutions and test results are obtained from CPLEX solver. Findings The outcomes of the proposed model were demonstrated through a case study conducted in an Indian hospital furniture manufacturing firm. The modern supply chain is mapped to make it closed loop, and potential risks in its supply chain are identified. The supply chain network of the firm is redesigned through embedding risk in the modeling process. It was found that companies can be in great profit if they follow closed-loop practices and simultaneously keep a check on risks as well. The cost of making the supply chain risk averse was found to be insignificant. Practical implications Although the study was conducted in a practical case situation, the obtained results are not indiscriminate to the other circumstances. However, the approach followed and proposed methodology can be applied to many industries once a firm decides to redesign its supply chain for closing its loop or model under risks. Originality/value By using the identified CLSC parameters and applying the proposed network design methodology, a firm can design/redesign their supply chain network to counter the risk and accordingly come up with planned mitigation strategies to achieve a certain degree of robustness.

scholarly journals A hybrid NSGA-II algorithm for the closed-loop supply chain network design in e-commerce  

2021 ◽  
Author(s):  
Shayan Shafiee Moghadam ◽  
Amir Aghsami ◽  
Masoud Rabbani
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Programming Model ◽  
Mixed Integer ◽  
Modern World ◽  
Supply Chain Network ◽  
Nsga Ii ◽  
Closed Loop Supply Chain ◽  
Proposed Model ◽  
Nonlinear Programming Model

Designing the supply chain network is one of the significant areas in e-commerce business management. This concept plays a crucial role in e-commerce systems. For example, location-inventory-pricing-routing of an e-commerce supply chain is considered a crucial issue in this field. This field established many severe challenges in the modern world, like maintaining the supply chain for returned items, preserving customers' trust and satisfaction, and developing an applicable supply chain with cost considerations. The research proposes a multi-objective mixed integer nonlinear programming model to design a closed-loop supply chain network based on the e-commerce context. The proposed model incorporates two objectives that optimize the business's total profits and the customers' satisfaction. Then, numerous numerical examples are generated and solved using the epsilon constraint method in GAMS optimization software. The validation of the given model has been tested for the large problems via a hybrid two-level non-dominated sort genetic algorithm. Finally, some sensitivity analysis has been performed to provide some managerial insights.

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