Sustainable Design of a Multi-Echelon Closed Loop Supply Chain under Uncertainty for Durable Products

2021 ◽  
Vol 13 (19) ◽  
pp. 11126
Author(s):  
Abbas Al-Refaie ◽  
Yasmeen Jarrar ◽  
Natalija Lepkova
Keyword(s):  
Supply Chain ◽  
Stochastic Model ◽  
Environmental Sustainability ◽  
Closed Loop ◽  
Transportation Cost ◽  
Return Rate ◽  
Raw Material ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Durable Products

The increased awareness of environmental sustainability has led to increasing attention to closed loop supply chains (CLSC). The main objective of the CLSC is to capture values from end-of-life (EOL) products in a way that ensures a business to be economically and environmentally sustainable. The challenge is the complexity that occurrs due to closing the loop. At the same time, considering stochastic variables will increase the realism of the obtained results as well as the complexity of the model. This study aims to design a CLSC for durable products using a multistage stochastic model in mixed-integer linear programming (MILP) while considering uncertainty in demand, return rate, and return quality. Demand was described by a normal distribution whereas return rate and return quality were represented by a set of discrete possible outcomes with a specific probability. The objective function was to maximize the profit in a multi-period and multi-echelon CLSC. The multistage stochastic model was tested on a real case study at an air-conditioning company. The computational results identified which facilities should be opened in the reversed loop to optimize profit. The results showed that the CLSC resulted in a reduction in purchasing costs by 52%, an annual savings of 831,150 USD, and extra annual revenue of 5459 USD from selling raw material at a material market. However, the transportation cost increased by an additional annual cost of 6457 USD, and the various recovery processes costs were annually about 152,897 USD. By running the model for nine years, the breakeven point will be after three years of establishing the CLSC and after the annual profit increases by 1.92%. In conclusion, the results of this research provide valuable analysis that may support decision-makers in supply chain planning regarding the feasibility of converting the forward chain to closed loop supply chain for durable products.

Design of Closed Loop Supply Chain Networks

2014 ◽  
Vol 1 (1) ◽  
pp. 43-66 ◽  
Author(s):  
Subramanian Pazhani ◽  
A. Ravi Ravindran
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Closed Loop ◽  
The United States ◽  
Raw Material ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Supply Chain Networks ◽  
Optimal Network Design ◽  
Optimal Network

Given the importance of operating and managing forward and reverse supply chains in an integrated manner, this article considers an integrated four-stage supply chain network with forward and reverse product flows. We consider a closed loop supply chain (CLSC) network with primarily commercial returns, which could be potentially recovered by light repair operations or by refurbishing. The annual estimate of commercial returns in the United States is in excess of $100 billion. This paper discusses the optimal design of a CLSC network.A mixed integer linear programming (MILP) model is developed to determine the optimal locations of the facilities and the distribution of flows between facilities in the CLSC to maximize the total profit. The model is illustrated using a realistic example applicable to the electronics industries. Even though recycling and refurbishing add cost, the overall supply chain profit increases due to a reduction in the raw material cost. Sensitivity analysis is carried out to determine the effect of return percentage and varying demands of customers who are willing to buy refurbished products. The analysis show that the total supply chain profit increases with the increase in refurbishing activity. Finally, changes in the network design with respect to the uncertainty in these return parameters are also studied. The results show that the changes in return parameters lead to changes in optimal network design implying the need to explicitly consider the uncertainty in these return parameters.

The Design of Closed-Loop Supply Chain Network

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.

scholarly journals A hybrid method to design and optimize a battery closed-loop supply chain: multi-objective approach

2021 ◽  
Author(s):  
Babak Mohamadpour Tosarkani
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Reverse Flow ◽  
Transportation Cost ◽  
Fuzzy Programming ◽  
Analytic Network Process ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Multi Objective ◽  
Network Process

There are a variety of prominent factors associated with total expected profit of a closed-loop supply chain (CLSC). In a forward flow, volatility in transportation cost, inventory cost, and forecasting the market’s demand are the most challenging issues for decision makers, while determining the rate of returned products and efficiency in recycling the returned products are crucial parameters to predict in reverse flow. In this thesis, it is aimed to develop and apply mixed-integer linear programming (MILP), scenario-based analysis, and fully fuzzy programming (FFP) methods to maximize the profit for a multi-echelon, multi-components, multi-product, multi-period battery CLSC in Vancouver, Canada. Furthermore, the proposed model is extended to multi-objective to consider the green factors related to plants and battery recovery centers. Fuzzy analytic network process (Fuzzy ANP) is utilized to convert the qualitative factors to the measurable parameters. Then, distance technique and ℇ-constraint method are utilized for solving the multi-objective problem.

scholarly journals A hybrid method to design and optimize a battery closed-loop supply chain: multi-objective approach

2021 ◽  
Author(s):  
Babak Mohamadpour Tosarkani
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Reverse Flow ◽  
Transportation Cost ◽  
Fuzzy Programming ◽  
Analytic Network Process ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Multi Objective ◽  
Network Process

There are a variety of prominent factors associated with total expected profit of a closed-loop supply chain (CLSC). In a forward flow, volatility in transportation cost, inventory cost, and forecasting the market’s demand are the most challenging issues for decision makers, while determining the rate of returned products and efficiency in recycling the returned products are crucial parameters to predict in reverse flow. In this thesis, it is aimed to develop and apply mixed-integer linear programming (MILP), scenario-based analysis, and fully fuzzy programming (FFP) methods to maximize the profit for a multi-echelon, multi-components, multi-product, multi-period battery CLSC in Vancouver, Canada. Furthermore, the proposed model is extended to multi-objective to consider the green factors related to plants and battery recovery centers. Fuzzy analytic network process (Fuzzy ANP) is utilized to convert the qualitative factors to the measurable parameters. Then, distance technique and ℇ-constraint method are utilized for solving the multi-objective problem.

scholarly journals A mathematical model for designing a reliable cellular hybrid manufacturing-remanufacturing system considering alternative and contingency process routings

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Amirreza Hooshyar Telegraphi ◽  
Akif Asil Bulgak
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Manufacturing Systems ◽  
Closed Loop ◽  
Sustainable Manufacturing ◽  
Critical Issue ◽  
Economic Benefits ◽  
Mixed Integer ◽  
Hybrid Manufacturing ◽  
Closed Loop Supply Chain

AbstractDue to the stringent awareness toward the preservation and resuscitation of natural resources and the potential economic benefits, designing sustainable manufacturing enterprises has become a critical issue in recent years. This presents different challenges in coordinating the activities inside the manufacturing systems with the entire closed-loop supply chain. In this paper, a mixed-integer mathematical model for designing a hybrid-manufacturing-remanufacturing system in a closed-loop supply chain is presented. Noteworthy, the operational planning of a cellular hybrid manufacturing-remanufacturing system is coordinated with the tactical planning of a closed-loop supply chain. To improve the flexibility and reliability in the cellular hybrid manufacturing-remanufacturing system, alternative process routings and contingency process routings are considered. The mathematical model in this paper, to the best of our knowledge, is the first integrated model in the design of hybrid cellular manufacturing systems which considers main and contingency process routings as well as reliability of the manufacturing system.

scholarly journals A fuzzy approach to multi-objective mixed integer linear programming model for multi-echelon closed-loop supply chain with multi-product multi-time-period

2020 ◽  
Vol 30 (1) ◽  
Author(s):  
Sema Akin Bas ◽  
Beyza Ahlatcioglu Ozkok
Keyword(s):  
Linear Programming ◽  
Supply Chain ◽  
Integer Linear Programming ◽  
Mixed Integer Linear Programming ◽  
Closed Loop ◽  
Mixed Integer ◽  
Fuzzy Approach ◽  
Closed Loop Supply Chain ◽  
Multi Objective ◽  
Time Period

By the green point of view, supply chain management (SCM), which contains supplier and location selection, production, distribution, and inventory decisions, is an important subject being examined in recent years by both practitioners and academicians. In this paper, the closed-loop supply chain (CLSC) network that can be mutually agreed by meeting at the level of common satisfaction of conflicting objectives is designed. We construct a multi-objective mixed-integer linear programming (MOMILP) model that allows decision-makers to more effectively manage firms’ closed-loop green supply chain (SC). An ecological perspective is brought by carrying out the recycling, remanufacturing and destruction to SCM in our proposed model. Maximize the rating of the regions in which they are located, minimize total cost and carbon footprint are considered as the objectives of the model. By constructing our model, the focus of customer satisfaction is met, as well as the production, location of facilities and order allocation are decided, and we also carry out the inventory control of warehouses. In our multi-product multi-component multi-time-period model, the solution is obtained with a fuzzy approach by using the min operator of Zimmermann. To illustrate the model, we provide a practical case study, and an optimal result containing a preferable level of satisfaction to the decision-maker is obtained.

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