Developing a Bi-Objective Model of the Closed-Loop Supply Chain Network design compatible with environment

Document Type : Research Paper

Authors

Dept. of Industrial Engineering, K.N. Toosi University of technology, I.R. Iran

Abstract

Closed-loop supply chain network (CLSCN) design aims at incorporating environmental considerations into the traditional supply chain design by including recycling, disassembly and reuse activities. In a CLSCN, the environmental considerations can also be facilitated by resorting to environmentally friendly materials and enhancing product reuse through the design of an appropriate product recovery, disassembly, and refurbishing network. In this design process, tradeoffs must be made to accommodate the profit and greenness maximization objectives. In this paper, a bi-objective binary integer programming model is developed and solved for a forward/reverse logistic network including three echelons in forward direction (namely, suppliers, assembly centers and customer zones) and two echelons in the reverse direction (namely, disassembly and e-recycling centers). A set of Pareto optimal solutions is obtained to show the trade-off between the profit and the greenness objectives. Some useful managerial insights are developed through various experiments.

Keywords

Main Subjects

References

1. Nukala, S. and Gupta, S. M. (2007). A fuzzy mathematical programming approach for supplier selection in a closed-loop supply chain network. In Proceedings of the 2007 POMS-Dallas meeting.
2. Rogers, D. S., Tibben-Lembke, R. S., and Council, R. L. E. (1999). Going backwards: reverse logistics trends and practices, Volume 2, (Reverse Logistics Executive Council Pittsburgh, PA).
3. Üster, H., Easwaran, G., Akçali, E., and Cetinkaya, S. (2007). "Benders decomposition with alternative multiple cuts for a multi-product closed-loop supply chain network design model." Naval Research Logistics (NRL), Vol. 54, No. 8, 890-907.
4. Fleischmann, M., Krikke, H. R., Dekker, R., and Flapper, S. D. P. (2000). "A characterisation of logistics networks for product recovery." Omega, Vol. 28, No. 6, 653-666.
5. Fleischmann, M., Bloemhof-Ruwaard, J. M., Dekker, R., Van der Laan, E., Van Nunen, J. A., and Van Wassenhove, L. N. (1997). "Quantitative models for reverse logistics: a review." European Journal of Operational Research, Vol. 103, No. 1, 1-17.
6. Baumgarten, H., Butz, C., Fritsch, A., and Sommer-Dittrich, T. (2003). Supply chain management and reverse logistics-integration of reverse logistics processes into supply chain management approaches. In Electronics and the Environment, 2003. IEEE International Symposium on. (IEEE), 79-83.
7. Schultmann, F., Zumkeller, M., and Rentz, O. (2006). "Modeling reverse logistic tasks within closed-loop supply chains: An example from the automotive industry." European Journal of Operational Research, Vol. 171, No. 3, 1033-1050.
8. Pishvaee, M. S., Farahani, R. Z., and Dullaert, W. (2010). "A memetic algorithm for bi-objective integrated forward/reverse logistics network design." Computers & Operations Research, Vol. 37, No. 6, 1100-1112.
9. Amin, S. H. and Zhang, G. (2013). "A multi-objective facility location model for closed-loop supply chain network under uncertain demand and return." Applied Mathematical Modelling, Vol. 37 , No. 6, 4165-4176.
10.       Amin, S. H. and Zhang, G. (2012). "An integrated model for closed-loop supply chain configuration and supplier selection: Multi-objective approach." Expert Systems with Applications, Vol. 39, No. 8, 6782-6791.
11. Srivastava, S. K. (2007). "Green supply‐chain management: a state‐of‐the‐art literature review." International Journal of Management Reviews, Vol. 9, No. 1, 53-80.
12.       Yeh, W. -C. (2005). "A hybrid heuristic algorithm for the multistage supply chain network problem." The International Journal of Advanced Manufacturing Technology, Vol. 26, No. 5-6, 675-685.
13.       Du, F. and Evans, G. W. (2008). "A bi-objective reverse logistics network analysis for post-sale service." Computers & Operations Research, Vol. 35, No. 8, 2617-2634.
14.       Ko, H. J. and Evans, G. W. (2007). "A genetic algorithm-based heuristic for the dynamic integrated forward/reverse logistics network for 3PLs." Computers & Operations Research, Vol. 34, No. 2, 346-366.
15.       Jayaraman, V., Guide Jr, V., and Srivastava, R. (1999). "A closed-loop logistics model for remanufacturing." Journal of The Operational Research Society, 497-508.
16.       Krikke, H., van Harten, A., and Schuur, P. (1999). "Business case Oce: reverse logistic network re-design for copiers." OR-Spektrum,Vol. 21, No. 3, 381-409.
17.       Pishvaee, M. S., Kianfar, K., and Karimi, B. (2010). "Reverse logistics network design using simulated annealing." The International Journal of Advanced Manufacturing Technology, Vol. 47, No. 1-4, 269-281.
18. Lu, Z. and Bostel, N. (2007). "A facility location model for logistics systems including reverse flows: The case of remanufacturing activities." Computers & Operations Research, Vol. 34, No. 2, 299-323.
19.       Hugo, A. and Pistikopoulos, E. (2005). "Environmentally conscious long-range planning and design of supply chain networks." Journal of Cleaner Production, Vol. 13, No. 15, 1471-1491.
20.       Pati, R. K., Vrat, P., and Kumar, P. (2008). "A goal programming model for paper recycling system." Omega, Vol. 36, No. 3, 405-417.
21.       Güngör, A. (2006). "Evaluation of connection types in design for disassembly (DFD) using analytic network process." Computers & Industrial Engineering, Vol. 50, No. 1, 35-54.
22.       Marin, A. and Pelegrín, B. (1998). "The return plant location problem: Modelling and resolution." European Journal of Operational Research,Vol. 104, No. 2, 375-392.
23.       Jayaraman, V., Patterson, R. A., and Rolland, E. (2003). "The design of reverse distribution networks: models and solution procedures." European Journal of Operational Research, Vol. 150, No. 1, 128-149.
24.       Lee, D. -H. and Dong, M. (2008). "A heuristic approach to logistics network design for end-of-lease computer products recovery." Transportation Research Part E: Logistics and Transportation Review, Vol. 44, No. 3, 455-474.
25.       Pishvaee, M. S., Jolai, F., and Razmi, J. (2009). "A stochastic optimization model for integrated forward/reverse logistics network design." Journal of Manufacturing Systems, Vol. 28, No. 4, 107-114.
26.       Wang, H. -F. and Hsu, H. -W. (2010). "A closed-loop logistic model with a spanning-tree based genetic algorithm." Computers & Operations Research, Vol. 37, No. 2, 376-389.
27.       Davis, P. and Ray, T. (1969). "A branch‐bound algorithm for the capacitated facilities location problem." Naval Research Logistics Quarterly, Vol. 16, No. 3, 331-344.
28.   Mirchandani, P. B. and Francis, R. L. (1990). Discrete location theory.
Advances in Industrial Engineering
Volume 49, Issue 1 - Serial Number 1
بهار و تابستان
April 2015
Pages 93-106

Files

Share

How to cite

Statistics