scholarly journals Application of Exact and Multi-Heuristic Approaches to a Sustainable Closed Loop Supply Chain Network Design

2021 ◽  
Vol 13 (5) ◽  
pp. 2433
Author(s):  
Abdul Salam Khan ◽  
Qazi Salman Khalid ◽  
Khawar Naeem ◽  
Rafiq Ahmad ◽  
Razaullah Khan ◽  
...  

Closed-loop supply chains (CLSC) are gaining popularity due to their efficiency in addressing economic, environmental, and social concerns. An important point to ponder in the distribution of CLSC is that imperfect refrigeration and bad road conditions may result in product non-conformance during the transit and thus such products are to be returned to the supply node. This may hinder the level of customer satisfaction. This paper presents a sustainable closed-loop supply chain framework coupled with cross-docking subject to product non-conformance. A cost model is proposed to investigate the economic and environmental aspects of such systems. The transportation cost is analyzed in terms of total carbon emissions. A set of metaheuristics are administered to solve the model and a novel lower bound is proposed to relax the complexity of the proposed model. The results of different size problems are compared with the branch and bound approach and the proposed lower bound. The results indicate that the proposed research framework, mathematical model, and heuristic schemes can aid the decision-makers in a closed-loop supply chain context.

2012 ◽  
Vol 190-191 ◽  
pp. 218-221 ◽  
Author(s):  
Yu Juan Chen ◽  
Dong Bo Liu ◽  
Hong Wei Mao ◽  
Zi Qiang Zhang

This paper addresses an integrated uncertain programming model for a closed-loop supply chain with manufacturing/remanufacturing hybrid system. The hybrid system is studied under the grey fuzzy uncertainty and grey uncertainty. The hybrid intelligent optimization algorithm integrating the grey fuzzy simulation, neural network and genetic algorithm can optimize the uncertain model. One numerical example is given to illustrate the effectiveness of the proposed model and algorithm.


2019 ◽  
Vol 11 (15) ◽  
pp. 4237 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Wei Li

The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.


2021 ◽  
Vol 257 ◽  
pp. 02019
Author(s):  
Sijia Liu ◽  
Yanting Huang

According to an e-commerce closed-loop supply chain dominated by manufacturers, which is composed of manufacturers and e-commerce platforms, divided into three different recovery mode: manufacturers recycling mode alone, electric business platform recycling mode alone, and manufacturers and electric business platform mixed mode, using the game theory to solve, compares three closed-loop supply chains found: (1)When the recycling price sensitivity is high, the optimal strategy of the manufacturer is the manufacturers recycling mode alone; when the price sensitivity of recycling is low, the manufacturer’s best strategy is the independent recycling mode of the e-commerce platform. No matter how sensitive the recycling price is, the profits of the manufacturer under the mixed recycling mode are always lower than those under the other two recycling modes. (2) When the recycling price sensitivity is high, the optimal strategy of the electric business platform is the mixed recycling mode; when the price sensitivity of recycling is low, the optimal solution of the electric business platform is the independent recycling mode of the electric business platform. (3) When the recovery price sensitivity is low, the best strategy of both is the separate recycling mode of the electric business platform.


2018 ◽  
Vol 118 (2) ◽  
pp. 480-498 ◽  
Author(s):  
Yacan Wang ◽  
Benjamin T. Hazen ◽  
Diane A. Mollenkopf

Purpose The success of closed loop supply chains is contingent upon consumer acceptance of remanufactured products, yet little is known about how consumers value such products. The purpose of this paper is to provide theoretical grounding for understanding consumers’ value perceptions as related to remanufactured products. Design/methodology/approach Diffusion of innovation theory and customer perceived value literature help form the theoretical model, which is tested empirically using survey data of consumers. Structural equation modeling was employed to test the hypotheses. Findings Perceived value of remanufactured products is measured as a function of perceived benefits (environmental benefits; price advantage) and perceived sacrifices (perceived quality; perceived risk), all of which are shown to impact perceived value. Additionally, perceived risk is found to partially mediate the relationship between perceived quality and perceived value. Originality/value This research makes two significant contributions. First, mid-range theory that is contextualized to the closed loop supply chain is developed to aid researchers and practitioners in better understanding the consumer’s role in the closed loop supply chain, as related to the acceptance of remanufactured products. Second, consumer acceptance of remanufactured products represents a form of supply chain demand risk that has previously been unrecognized. The results provide a foundation for incorporating this type of demand risk in to future research efforts.


2011 ◽  
Vol 2 (3) ◽  
pp. 1-15
Author(s):  
A. H. Basiri ◽  
A. Shemshadi ◽  
M. J. Tarokh

Recently, with the environmental crisis, Green supply chain management (or GSCM), and in particular closed loop supply chain model, has received considerable attention by researchers. Closed loop supply chain model aims at reduction of waste and generating profit for enterprises through integrating forward and reverse logistics. Unfortunately, there is limited research on general models for closed loop supply chains in literature. In this paper, extending and enhancing previous models, a general model is proposed for closed loop supply chains using linear programming. The goal of this study is to minimize the leakage of a closed loop supply chain to avoid waste and reduce SCM costs.


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 13 (12) ◽  
pp. 6663
Author(s):  
Muhammad Salman Shabbir ◽  
Ahmed Faisal Siddiqi ◽  
Lis M. Yapanto ◽  
Evgeny E. Tonkov ◽  
Andrey Leonidovich Poltarykhin ◽  
...  

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.


2021 ◽  
Vol 13 (18) ◽  
pp. 10025
Author(s):  
Xinyi Li ◽  
Guoxuan Huang ◽  
Jie Chu ◽  
Benrong Zheng ◽  
Kai Huang

The cooperative and competitive (i.e., co-opetition) behavior between retailers plays a significant role in the development of operations and marketing strategies in a supply chain. Specifically, retailers’ co-opetition relationship pivotally influences the sustainable performance in a closed-loop supply chain. This study examines the impact of retailer co-opetition on pricing, collection decisions and coordination in a closed-loop supply chain with one manufacturer and two competing retailers. Based on observations in some industries (e.g., electronic manufacturing, fabric and textile, etc.), the cooperative and competitive relationships between retailers can be classified into the following three different modes: Bertrand competition, Stackelberg competition, and Collusion. In this paper, we establish a centralized and three decentralized game-theoretic models under these three co-opetition modes and characterize the corresponding equilibrium outcomes. The results indicate that the Bertrand competition mode yields the highest return rate, which is also superior to the other two modes for both the manufacturer and the supply chain system in terms of profitability. However, it can be shown that which mode benefits the retailers would depend on the degree of competition between the retailers and the relative remanufacturing efficiency. Interestingly, we find that the retailer’s first-move advantage does not necessarily lead to higher profits. In addition, we design a modified two-part tariff contract to coordinate the decentralized closed-loop supply chains under three different retailer co-opetition modes, and the results suggest that the optimal contractual parameters in the contracts highly rely on the remanufacturing efficiency and the competition degree between the two retailers. Several managerial insights for firms, consumers and policy makers are provided through numerical analysis.


Author(s):  
Matineh ziari ◽  
Mohsen Sheikh Sajadieh

Closed-loop supply chains have attracted more attention by researchers and practitioners due to strong government regulations, environmental issues, social responsibilities and natural resource constraints over past few years. This paper presents a mixed-integer linear programming model to design a closed-loop supply chain network and optimizing pricing policies under random disruption. Reusing the returned products is applied as a resilience strategy to cope with the waste of energy and improving supply efficiency. Moreover, it is necessary to find the optimal prices for both final and returned products. Therefore, the model is formulated based on demand function and it maximizes total supply chain’s profit. Finally, its application is explored through using the real data of an industrial company in glass industry.


Sign in / Sign up

Export Citation Format

Share Document