An eco-friendly closed loop supply chain network with multi-facility allocated centralized depots for bidirectional flow in a battery manufacturing industry

2019 ◽  
Vol 17 (1) ◽  
pp. 131-159
Author(s):  
S. Umar Sherif ◽  
P. Sasikumar ◽  
P. Asokan ◽  
J. Jerald

Purpose Due to the economic benefits and environmental awareness, most of the battery manufacturing industries in India are interested to redesign their existing supply chain network or to incorporate the effective closed loop supply chain network (CLSCN). The purpose of this paper is to develop CLSCN model with eco-friendly distribution network and also enhance recycling to utilize recycled lead for new battery production. The existing CLSCN model of a battery manufacturing industry considered for case study is customized for attaining economic benefit and environmental safety. Hence, single objective, multi-echelon, multi-period and multi-product CLSCN model with centralized depots (CD) is developed in this work to maximize the profit and reduce the emission of CO2 in transportation. Design/methodology/approach The proposed CD has the facility to store new batteries (NB), scrap batteries (SB) and lead ingot. The objective of the proposed research work is to identify potential location of CD using K-means clustering algorithm, to allocate facilities with CD using multi-facility allocation (MFA) algorithm and to minimize overall travel distance by allowing bidirectional flow of materials and products between facilities. The proposed eco-friendly CLSCN-CD model is solved using GAMS 23.5 for optimal solutions. Findings The performance of the proposed model is validated by comparing with existing model. The evaluation reveals that the proposed model is better than the existing model. The sensitivity analysis is demonstrated with different rate of return of SB, different proportion of recycled lead and different type of vehicles, which will help the management to take appropriate decision in the context of cost savings. Originality/value This research work has proposed single objective, multi echelon, multi period and multi product CLSCN-CD model in the battery manufacturing industry to maximize the profit and reduce the CO2 emission in transportation, by enhancing the bidirectional flow of materials/products between facilities of entire model.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saman Esmaeilian ◽  
Dariush Mohamadi ◽  
Majid Esmaelian ◽  
Mostafa Ebrahimpour

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.


2020 ◽  
Vol 15 (4) ◽  
pp. 1613-1653
Author(s):  
Jaber Valizadeh ◽  
Ehsan Sadeh ◽  
Zainolabedin Amini Sabegh ◽  
Ashkan Hafezalkotob

Purpose In this study, the authors consider the key decisions in the design of the green closed-loop supply chain (CSLC) network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, in this paper is the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered. Design/methodology/approach In this study, the author consider the key decisions in the design of the green CLSC network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered. Findings The results indicate that the results obtained from the colonial competition algorithm have higher quality than the genetic algorithm. This quality of results includes relative percentage deviation and computational time of the algorithm and it is shown that the computational time of the colonial competition algorithm is significantly lower than the computational time of the genetic algorithm. Furthermore, the limit test and sensitivity analysis results show that the proposed model has sufficient accuracy. Originality/value Solid modeling of the green supply chain of the closed loop using the solid optimized method by Bertsimas and Sim. Development of models that considered environmental impacts to the closed loop supply chain. Considering the impact of the technology type in the manufacture of products and the recycling of waste that will reduce emissions of environmental pollutants. Another innovation of the model is the multi-cycle modeling of the closed loop of supply chain by considering the uncertainty and the fixed and variable cost of transport.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeid Jafarzadeh Ghoushchi ◽  
Iman Hushyar ◽  
Kamyar Sabri-Laghaie

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prem Chhetri ◽  
Mahsa Javan Nikkhah ◽  
Hamed Soleimani ◽  
Shahrooz Shahparvari ◽  
Ashkan Shamlou

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.


2017 ◽  
Vol 12 (3) ◽  
pp. 551-574 ◽  
Author(s):  
Surya Prakash ◽  
Gunjan Soni ◽  
Ajay Pal Singh Rathore

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.


2021 ◽  
Vol 13 (16) ◽  
pp. 9407
Author(s):  
Lily Poursoltan ◽  
Seyed-Mohammad Seyed-Hosseini ◽  
Armin Jabbarzadeh

The closed-loop supply chain considers conceptually the possibility of reverse logistics with the use of recycling, remanufacturing and disposal centers. This study contributes for the first time a green closed-loop supply chain framework for the ventilators, which are highly important in the case of the COVID-19 pandemic. The proposed model simulates a case study of Iranian medical ventilator production. The proposed model includes environmental sustainability to limit the carbon emissions as a constraint. A novel stochastic optimization model with strategic and tactical decision making is presented for this closed-loop supply chain network design problem. To make the proposed ventilator logistics network design more realistic, most of the parameters are considered to be uncertain, along with the normal probability distribution. Finally, to show the managerial dimensions under the COVID-19 pandemic for our proposed model, some sensitivity analyses are performed. Results confirm the high impact of carbon emissions and demand variations on the optimal solution in the case of COVID-19.


2022 ◽  
Author(s):  
Shahab Safaei ◽  
Peiman Ghasemi ◽  
Fariba Goodarzian ◽  
Mohsen Momenitabar

Abstract In the closed-loop supply chain, demand plays a critical role. The flow of materials and commodities in the opposite direction of the normal chain is inevitable too. So, in this paper, a new multi-echelon multi-period closed-loop supply chain network is addressed to minimize the total costs of the network. The considered echelons include suppliers, manufacturers, distribution centers, customers, and recycling and recovery units of components in the proposed network. Also, a linear programming model considering factories' vehicles and rental cars of transportation companies is formulated for the proposed problem. Moreover, the products demand is predicted by Auto-Regressive Integrated Moving Average (ARIMA) time series model to decrease the amount of shortage may happens in the network. To solve the proposed model, GAMS software is used in small-sized problems and a genetic algorithm in large-sized problems is employed. Numerical results show that the proposed model is closer to the real situation and the proposed solution method is efficient. Accordingly, sensitivity analysis is performed on important parameters to show the performance of the proposed model.


Author(s):  
Shayan Shafiee Moghadam ◽  
Amir Aghsami ◽  
Masoud Rabbani

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.


Kybernetes ◽  
2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanieh Shambayati ◽  
Mohsen Shafiei Nikabadi ◽  
Seyed Mohammad Ali Khatami Firouzabadi ◽  
Mohammad Rahmanimanesh ◽  
Sara Saberi

PurposeSupply chains (SCs) have been growingly virtualized in response to the market challenges and opportunities that are presented by new and cost-effective internet-based technologies today. This paper designed a virtual closed-loop supply chain (VCLSC) network based on multiperiod, multiproduct and by using the Internet of Things (IoT). The purpose of the paper is the optimization of the VCLSC network.Design/methodology/approachThe proposed model considers the maximization of profit. For this purpose, costs related to virtualization such as security, energy consumption, recall and IoT facilities along with the usual costs of the SC are considered in the model. Due to real-world demand fluctuations, in this model, demand is considered fuzzy. Finally, the problem is solved using the Grey Wolf algorithm and Firefly algorithm. A numerical example and sensitivity analysis on the main parameters of the model are used to describe the importance and applicability of the developed model.FindingsThe findings showed that the Firefly algorithm performed better and identified more profit for the SC in each period. Also, the results of the sensitivity analysis using the IoT in a VCLSC showed that the profit of the virtual supply chain (VSC) is higher compared to not using IoT due to tracking defective parts and identifying reversible products. In proposed model, chain members can help improve chain operations by tracking raw materials and products, delivering products faster and with higher quality to customers, bringing a new level of SC efficiency to industries. As a result, VSCs can be controlled, programmed and optimized remotely over the Internet based on virtual objects rather than direct observation.Originality/valueThere are limited researches on designing and optimizing the VCLSC network. This study is one of the first studies that optimize the VSC networks considering minimization of virtual costs and maximization of profits. In most researches, the theory of VSC and its advantages have been described, while in this research, mathematical optimization and modeling of the VSC have been done, and it has been tried to apply SC virtualization using the IoT. Considering virtual costs in VSC optimization is another originality of this research. Also, considering the uncertainty in the SC brings the issue closer to the real world. In this study, virtualization costs including security, recall and energy consumption in SC optimization are considered.HighlightsInvestigates the role of IoT for virtual supply chain profit optimization and mathematical optimization of virtual closed-loop supply chain (VCLSC) based on multiperiod, multiproduct with emphasis on using the IoT under uncertainty.Considering the most important costs of virtualization of supply chain include: cost of IoT information security, cost of IoT energy consumption, cost of recall the production department, cost of IoT facilities.Selection of the optimal suppliers in each period and determination of the price of each returned product in virtual supply chain.Solving and validating the proposed model with two meta-heuristic algorithms (the Grey Wolf algorithm and Firefly algorithm).


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