scholarly journals Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making

Logistics ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 15
Author(s):  
Zhengyang Hu ◽  
Viren Parwani ◽  
Guiping Hu

The importance of considering forward and backward flows simultaneously in supply chain networks spurs an interest to develop closed-loop supply chain networks (CLSCN). Due to the expanded scope in the supply chain, designing CLSCN often faces significant uncertainties. This paper proposes a fuzzy multi-objective mixed-integer linear programming model to deal with uncertain parameters in CLSCN. The two objective functions are minimization of overall system costs and minimization of negative environmental impact. Negative environmental impacts are measured and quantified through CO2 equivalent emission. Uncertainties include demand, return, scrap rate, manufacturing cost and negative environmental factors. The original formulation with uncertain parameters is firstly converted into a crisp model and then an aggregation function is applied to combine the objective functions. Numerical experiments have been carried out to demonstrate the effectiveness of the proposed model formulation and solution approach. Sensitivity analyses on degree of feasibility, the weighing of objective functions and coefficient of compensation have been conducted. This model can be applied to a variety of real-world situations, such as in the manufacturing production processes.

2014 ◽  
Vol 1 (1) ◽  
pp. 43-66 ◽  
Author(s):  
Subramanian Pazhani ◽  
A. Ravi Ravindran

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.


2012 ◽  
Vol 3 (4) ◽  
pp. 1-26 ◽  
Author(s):  
Sina Golara ◽  
Nasim Mousavi ◽  
Mohammad Jafar Tarokh ◽  
Mostafa Hosseinzadeh

Reverse logistics (RL) and closed-loop supply chains (CLSC) have recently received enormous attention due to growing environmental concerns and legislations coupled with the lucrative business potential. The main purpose of this paper is to develop a closed-loop supply chain network design model capable of recovering glass containers. A multi-period multi-product mixed-integer linear programming model is proposed to maximize profit. The strategic design of the supply chain is dealt simultaneously with the tactical planning of its operation, which covers procurement, production, storage, distribution, take-back, reprocessing, reuse, and recycling. To illustrate the efficiency and practicability of the model, it is applied to a real-world case of beverage supply chain where the glass containers are either re-used or recycled into their original form, as raw materials. Finally, sensitivity analyses, from a financial perspective, have been conducted to reveal the determinants of profitable product recovery and grasp their managerial implications. The analyses showed that return rate and return acquisition cost have determinant impact on the economic viability of product recovery practice.


2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Amirreza Hooshyar Telegraphi ◽  
Akif Asil Bulgak

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.


2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Wenxue Ran ◽  
Fan Chen ◽  
Qianni Wu ◽  
Sen Liu

The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporate-reputation. It also has a great effect on the environment and resources protection. In the management of the closed-loop supply chain, the recycling of waste products and decision-making on pricing often directly affect the supply and demand of products and the operation efficiency of supply chain. Therefore, first we take waste glass bottles as an example and establish a mathematical model to solve the profit of manufacturers and retailers solely. Then, we analyzed whole supply chain profit under a dual-channel recycling condition which is directly recycled by consumers or by retailers. Finally, we concluded that no matter what product’s price, quality, profit, or operational efficiency of supply chain is, the overall recycling is better than the single node recycling model. Based on the analysis, we developed a new model to coordinate the profit of manufacturers and retailers in the supply chain with revenue-sharing contract. A numerical study shows that this approach is applicable and effective.


2020 ◽  
Vol 30 (1) ◽  
Author(s):  
Sema Akin Bas ◽  
Beyza Ahlatcioglu Ozkok

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.


2019 ◽  
Vol 71 ◽  
pp. 673-699 ◽  
Author(s):  
Vahid Hajipour ◽  
Madjid Tavana ◽  
Debora Di Caprio ◽  
Majid Akhgar ◽  
Yasaman Jabbari

2015 ◽  
Vol 2015 ◽  
pp. 1-22 ◽  
Author(s):  
Yan Zhou ◽  
Chi Kin Chan ◽  
Kar Hung Wong ◽  
Y. C. E. Lee

Recently, the first oligopolistic competition model of the closed-loop supply chain network involving uncertain demand and return has been established. This model belongs to the context of oligopolistic firms that compete noncooperatively in a Cournot-Nash framework. In this paper, we modify the above model in two different directions. (i) For each returned product from demand market to firm in the reverse logistics, we calculate the percentage of its optimal product flows in each individual path connecting the demand market to the firm. This modification provides the optimal product flow routings for each product in the supply chain and increases the optimal profit of each firm at the Cournot-Nash equilibrium. (ii) Our model extends the method of finding the Cournot-Nash equilibrium involving smooth objective functions to problems involving nondifferentiable objective functions. This modification caters for more real-life applications as a lot of supply chain problems involve nonsmooth functions. Existence of the Cournot-Nash equilibrium is established without the assumption of differentiability of the given functions. Intelligent algorithms, such as the particle swarm optimization algorithm and the genetic algorithm, are applied to find the Cournot-Nash equilibrium for such nonsmooth problems. Numerical examples are solved to illustrate the efficiency of these algorithms.


2015 ◽  
Vol 80 ◽  
pp. 73-91 ◽  
Author(s):  
Magdalini A. Kalaitzidou ◽  
Pantelis Longinidis ◽  
Michael C. Georgiadis

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