Closed-Loop Supply Chain Design with Sustainability Aspects and Network Resilience under Uncertainty: Modelling and Application

In this study, we present a multiobjective mixed-integer nonlinear programming (MINLP) model to design a closed-loop supply chain (CLSC) from production stage to distribution as well as recycling for reproduction. The given network includes production centers, potential points for establishing of distribution centers, retrieval centers, collecting and recycling centers, and the demand points. The presented model seeks to find optimal locations for distribution centers, second-hand product collection centers, and recycling centers under the uncertainty situation alongside the factory’s fixed points. The purpose of the presented model is to minimize overall network costs including processing, establishing, and transportation of products and return flows as well as environmental impacts while maximizing social scales and network flexibility according to the presence of uncertainty parameters in the problem. To solve the proposed model with fuzzy uncertainty, first, the improved epsilon (ε)-constraints approach is used to transform a multiobjective to a single-objective problem. Afterward, the Lagrangian relaxation approach is applied to effectively solve the problem. A real-world case study is used to evaluate the performance of the proposed model. Finally, sensitivity analysis is performed to study the effects of important parameters on the optimal solution.

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Closed-Loop Supply Chain Design and Pricing in Competitive Conditions by Considering the Variable Value of Return Products Using the Whale Optimization Algorithm

Sustainability ◽

10.3390/su13126663 ◽

2021 ◽

Vol 13 (12) ◽

pp. 6663

Author(s):

Muhammad Salman Shabbir ◽

Ahmed Faisal Siddiqi ◽

Lis M. Yapanto ◽

Evgeny E. Tonkov ◽

Andrey Leonidovich Poltarykhin ◽

...

Keyword(s):

Supply Chain ◽

Optimization Algorithm ◽

Closed Loop ◽

Optimal Solution ◽

Supply Chain Design ◽

Whale Optimization Algorithm ◽

Special Focus ◽

Closed Loop Supply Chain ◽

Proposed Model ◽

Whale Optimization

In today’s competitive environment, organizations, in addition to trying to improve their production conditions, have a special focus on their supply chain components. Cooperation between supply chain members always reduces unforeseen costs and speeds up the response to customer demand. In the new situation, according to the category of return products and their reprocessing, supply chains have found a closed-loop structure. In this research, the aim was to design a closed-loop supply chain in competitive conditions. For this purpose, the key decisions of this chain included locating retail centers, adjusting the inventory of chain members, and selling prices of final products, optimally determined. For this purpose, a nonlinear integer mathematical model is presented. One of the most important innovations of this research was considering the variable value for return products. Then, in order to solve the proposed model, a whale optimization algorithm was developed. Numerical results from the sample examples showed that the whale algorithm had a very good performance in terms of response quality and speed-of-action in finding the optimal solution to this problem.

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

Journal of Enterprise Information Management ◽

10.1108/jeim-12-2020-0514 ◽

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.

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A multi-objective optimal decision model for a green closed-loop supply chain under uncertainty: A real industrial case study

Advances in Production Engineering & Management ◽

10.14743/apem2021.2.391 ◽

2021 ◽

Vol 16 (2) ◽

pp. 161-172

Author(s):

I.W. Fang ◽

W.-T. Lin

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Resource Scarcity ◽

Mixed Integer ◽

Optimal Decision ◽

Quality Level ◽

Chain Model ◽

Closed Loop Supply Chain ◽

Multi Objective ◽

Proposed Model

Green closed-loop supply chain management is an important topic for business operations today because of increasing resource scarcity and environmental issues. Companies not only have to meet environmental regulations, but also must ensure high quality supply chain operation as a means to secure competitive advantages and increase profits. This study proposes a multi-objective mixed integer programming model for an integrated green closed-loop supply chain network designed to maximize profit, amicable production level (environmentally friendly materials and clean technology usage), and quality level. A scenario-based robust optimization method is used to deal with uncertain parameters such as the demand of new products, the return rates of returned products and the sale prices of remanufactured products. The proposed model is applied to a real industry case example of a manufacturing company to illustrate the applicability of the proposed model. The result shows a robust optimal resource allocation solution that considers multiple scenarios. This study can be a reference for closed-loop supply chain related academic research and also can be used to guide the development of a green closed-loop supply chain model for better decision making.

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Designing a New Multi-Echelon Multi-Period Closed-Loop Supply Chain Network by Forecasting Demand Using Time Series Model: A Genetic Algorithm

10.21203/rs.3.rs-1127415/v1 ◽

2022 ◽

Author(s):

Shahab Safaei ◽

Peiman Ghasemi ◽

Fariba Goodarzian ◽

Mohsen Momenitabar

Keyword(s):

Genetic Algorithm ◽

Time Series ◽

Supply Chain ◽

Closed Loop ◽

Critical Role ◽

Time Series Model ◽

Supply Chain Network ◽

Distribution Centers ◽

Closed Loop Supply Chain ◽

Proposed Model

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.

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

RAIRO - Operations Research ◽

10.1051/ro/2021068 ◽

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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A multi-objective mixed-integer linear model for sustainable fruit closed-loop supply chain network

Management of Environmental Quality An International Journal ◽

10.1108/meq-12-2019-0276 ◽

2020 ◽

Vol 31 (5) ◽

pp. 1351-1373

Author(s):

Younis Jabarzadeh ◽

Hossein Reyhani Yamchi ◽

Vikas Kumar ◽

Nader Ghaffarinasab

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Environmental Indicators ◽

Mixed Integer ◽

Computational Time ◽

Distribution Centers ◽

Closed Loop Supply Chain ◽

Content Type ◽

Multi Objective ◽

Lp Metric

PurposeThis paper aims to present a closed-loop supply chain (CLSC) optimization problem for a perishable agricultural product to achieve three pillars of sustainability, including minimizing total network costs and carbon dioxide emissions from different network activities and maximizing responsiveness to demands simultaneously.Design/methodology/approachThe research problem is formulated as a multi-objective mixed-integer linear programming model, and classical approaches, including the LP-Metric and weighted Tchebycheff method, have been applied to solve the optimization model. A set of test problems has been proposed to validate the model, and the results are presented.FindingsComputational time to find Pareto optimal solutions by using the weighted Tchebycheff method was twice as much as that of the LP-Metric method. Also, the result of the study is a mathematical model that can be applied to other products that are close to the fruit, such as vegetables.Research limitations/implicationsThe present study is limited to fruits supply chains and the inventory is considered at the distribution centers only. The study also considers only one type of transport.Practical implicationsThe paper can assist supply chain managers to define strategies to achieve a sustainable CLSC network configuration for the fruits.Originality/valueThis study is one of the early studies to consider environmental indicators in fruits supply chain design along with two other indicators of sustainability, namely, economic and social indicators. Therefore, this can help supply chain managers to achieve sustainability by optimizing location decisions, inventory quantities and flow between facilities.

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The Design of Closed-Loop Supply Chain Network

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.744-746.1910 ◽

2015 ◽

Vol 744-746 ◽

pp. 1910-1914

Author(s):

Zhuo Dai

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Programming Model ◽

Raw Material ◽

Mixed Integer ◽

Variable Cost ◽

Fixed Cost ◽

Supply Chain Network ◽

Distribution Centers ◽

Closed Loop Supply Chain

This paper designs a model of muti-echelon closed-loop supply chain network (CLSC network). CLSC network includes raw material suppliers, manufacturers, distribution centers, collection centers and customer zones. The purpose of this paper is to minimize the overall costs of CLSC network. The overall costs include transportation cost, fixed cost, variable cost, penalty cost. This model is a mixed integer linear programming model. In general, it is very difficult to solve the model. Cplex12.6 is used in order to deal with this model. The results show that this model can be solved by Cplex12.6 well.

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Optimal inventory policy in a closed loop supply chain system with multiple periods

Journal of Industrial Engineering and Management ◽

10.3926/jiem.2205 ◽

2017 ◽

Vol 10 (2) ◽

pp. 237 ◽

Cited By ~ 1

Author(s):

SasiKumar A. ◽

Natarajan K ◽

Ramasubramaniam MuthuRathna Sapabathy ◽

Deepaknallasamy K.K

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Mixed Integer ◽

Order Quantity ◽

Reverse Supply Chain ◽

Supply Chain System ◽

Inventory Policy ◽

Closed Loop Supply Chain ◽

Proposed Model ◽

Fixed Order

Purpose: This paper aims to model and optimize the closed loop supply chain for maximizing the profit by considering the fixed order quantity inventory policy in various sites at multiple periods.Design/methodology/approach: In forward supply chain, a standard inventory policy can be followed when the product moves from manufacturer, distributer, retailer and customer but the inventory in the reverse supply chain of the product with the similar standard policy is very difficult to manage. This model investigates the standard policy of fixed order quantity by considering the three major types of return-recovery pair such as commercial returns, end- of- use returns, end –of- life returns and their inventory positioning at multiple periods. The model is configured as mixed integer linear programming and solved by IBM ILOG CPLEX OPL studio.Findings: To find the performance of the model a numerical example is considered for a product with three Parts (A which of 2nos, B and C) for 12 multiple periods. The results of the analysis show that the manufacturer can know how much should to be manufacture in multiple periods based on Variations of the demand by adopting the FOQ inventory policy at different sites considering its capacity constraints. In addition, it is important how much of parts should be purchased from the supplier at the given 12 periods.Originality/value: A sensitivity analysis is performed to validate the proposed model two parts. First part of the analysis will focus on the inventory of product and parts and second part of analysis focus on profit of the company. The analysis which provides some insights in to the structure of the model.

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A Modified Priority-Based Encoding for Design of a Closed-Loop Supply Chain Network Using a Discrete League Championship Algorithm

Mathematical Problems in Engineering ◽

10.1155/2018/8163927 ◽

2018 ◽

Vol 2018 ◽

pp. 1-16 ◽

Cited By ~ 2

Author(s):

Javid Ghahremani Nahr ◽

Ramez Kian ◽

Hassan Rezazadeh

Keyword(s):

Supply Chain ◽

Network Design ◽

Closed Loop ◽

Optimal Solution ◽

Network Design Problem ◽

Mixed Integer ◽

Numerical Comparison ◽

Supply Chain Network ◽

Closed Loop Supply Chain ◽

Smooth Flow

In a closed-loop supply chain network, the aim is to ensure a smooth flow of materials and attaining the maximum value from returning and end-of-life goods. This paper presents a single-objective deterministic mixed integer linear programming (MILP) model for the closed-loop supply chain (CLSC) network design problem consisting of plants, collection centers, disposal centers, and customer zones. Our model minimizes the total costs comprising fixed opening cost of plants, collection, disposal centers, and transportation costs of products among the nodes. As supply chain network design problems belong to the class of NP-hard problems, a novel league championship algorithm (LCA) with a modified priority-based encoding is applied to find a near-optimal solution. New operators are defined for the LCA to search the discrete space. Numerical comparison of our proposed encoding with the existing approaches in the literature is indicative of the high quality performance of the proposed encoding.

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