scholarly journals Risk-Averse Facility Location for Green Closed-Loop Supply Chain Networks Design under Uncertainty

2018 ◽  
Vol 10 (11) ◽  
pp. 4072 ◽  
Author(s):  
Xiao Zhao ◽  
Xuhui Xia ◽  
Lei Wang ◽  
Guodong Yu
Keyword(s):  
Supply Chain ◽  
Facility Location ◽  
Co2 Emissions ◽  
Closed Loop ◽  
Emission Rate ◽  
Uncertain Demand ◽  
Risk Averse ◽  
Closed Loop Supply Chain ◽  
Linearization Technique ◽  
Reformulation Linearization

With the increasing attention given to environmentalism, designing a green closed-loop supply chain network has been recognized as an important issue. In this paper, we consider the facility location problem, in order to reduce the total costs and CO2 emissions under an uncertain demand and emission rate. Particularly, we are more interested in the risk-averse method for providing more reliable solutions. To do this, we employ a coherent risk measure, conditional value-at-risk, to represent the underlying risk of uncertain demand and CO2 emission rate. The resulting optimization problem is a 0-1 mixed integer bi-objective programming, which is challenging to solve. We develop an improved reformulation-linearization technique, based on decomposed piecewise McCormick envelopes, to generate lower bounds efficiently. We show that the proposed risk-averse model can generate a more reliable solution than the risk-neutral model, both in reducing penalty costs and CO2 emissions. Moreover, the proposed algorithm outperforms and classic reformulation-linearization technique in convergence rate and gaps. Numerical experiments based on random data and a ‘real’ case are performed to demonstrate the performance of the proposed model and algorithm.

Competitive Pricing and Remanufacturing Problem in an Uncertain Closed-Loop Supply Chain with Risk-Sensitive Retailers

2018 ◽  
Vol 35 (01) ◽  
pp. 1850003 ◽  
Author(s):  
Hua Ke ◽  
Yong Wu ◽  
Hu Huang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Historical Data ◽  
Risk Sensitivity ◽  
Risk Averse ◽  
Closed Loop Supply Chain ◽  
Academic Fields ◽  
Risk Sensitive ◽  
The Face ◽  
Competitive Pricing

Nowadays, pricing and remanufacturing problems under uncertain markets have gained increasing attention from both industrial and academic fields. In the literature, it is generally assumed that all the channel members are risk-neutral, ignoring the influences of channel members’ risk attitudes in the face of dynamic market. This paper focuses on a pricing problem in a closed-loop supply chain (CLSC) with two competitive risk-sensitive retailers under uncertain environment. The uncertainty is associated with the recycling costs, consumer demands and remanufacturing costs. Due to the dynamic market, supply chain managers may be unable to collect enough historical data to estimate these demands and costs when making pricing and remanufacturing decisions. In such cases, experts’ estimations are usually employed to describe these uncertain parameters. To deal with these human estimations, an uncertainty theory-based model is proposed. Based on the equilibrium results, how the retailers’ risk sensitivity and human estimations (uncertain degrees) affect the prices and profits is analyzed. It is found that both the retailers will get lower profits while the manufacturer will gain more profit when either of the two retailers becomes more risk-averse. We also find that a higher level of uncertainty in the supply chain will induce a higher collecting rate.

scholarly journals A Nonlinear Integer Programming Model for Integrated Location, Inventory, and Routing Decisions in a Closed-Loop Supply Chain

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-17 ◽  
Author(s):  
Hao Guo ◽  
Congdong Li ◽  
Ying Zhang ◽  
Chunnan Zhang ◽  
Yu Wang
Keyword(s):  
Supply Chain ◽  
Integer Programming ◽  
Facility Location ◽  
Vehicle Routing ◽  
Closed Loop ◽  
Programming Model ◽  
Nonlinear Integer Programming ◽  
Inventory Routing ◽  
Closed Loop Supply Chain ◽  
Integer Programming Model

Facility location, inventory management, and vehicle routing are three important decisions in supply chain management, and location-inventory-routing problems consider them jointly to improve the performance and efficiency of today’s supply chain networks. In this paper, we study a location-inventory-routing problem to minimize the total cost in a closed-loop supply chain that has forward and reverse logistics flows. First, we formulate this problem as a nonlinear integer programming model to optimize facility location, inventory control, and vehicle routing decisions simultaneously in such a system. Second, we develop a novel heuristic approach that incorporates simulated annealing into adaptive genetic algorithm to solve the model efficiently. Last, numerical analysis is presented to validate our solution approach, and it also provides meaningful managerial insight into how to improve the closed-loop supply chain under study.

scholarly journals Pricing Decisions of a Dual-Channel Closed-Loop Supply Chain under Uncertain Demand of Indirect Channel

2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Jie Gao ◽  
Xiong Wang ◽  
Qiuling Yang ◽  
Qin Zhong
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Uncertain Demand ◽  
Direct Channel ◽  
Closed Loop Supply Chain ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
The Impact

The dual-channel closed-loop supply chain (CLSC) which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel (θ) on pricing decisions and excepted profits of the CLSC. The results show that when the variableθchanges in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease whenθincreases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase whenθincreases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected byθ.

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