Development of a closed loop supply chain network considering environmental factors and location-inventory decisions under uncertainty

Document Type : Research/ Original/ Regular Article

Authors

1 Associate Professor, Department of industrial engineering- Alzahra university

2 Department of Industrial Engineering,, Faculty of Engineering, Tehran, Iran

Abstract

Many researchers have simultaneously investigated location and inventory decisions. Furthermore, environmental factors in the design of supply chain networks have been studied. In this paper, a mixed-integer nonlinear programming model for the forward / reverse location-inventory problem with limited capacity considering production, distribution and recycling chain of automotive tires as a case study has been proposed. Compared to the previous research, a number of distribution centers, inspiring the real world situations, between factories and demand markets are considered and inventory decisions in those centers are also integrated in the model. Furthermore, the model in the uncertainty situation of key parameters such as demand and rate of return of products have been examined and analyzed. For more comprehensiveness of the model, environmental factors are considered in order to make the model closer to the real world situations. The developed model is investigated and analyzed utilizing different methods of multi-objective programming techniques.

Keywords


[1] Amiri, A., "Designing a distribution network in a supply chain system: formulation and efficient solution procedure", European Journal of Operational Research, 567– 576, 2006.
[2] Eppen, G., "Effects of centralization on expected costs in a multi-location newsboy problem". Management Science, 25 (5), 498–501, 1979.
[3] Chen, M.S and Lin, C.T., "Effects of centralization on expected costs in a multi-location newsboy problem", Journal of Operations Research Society, 40 (6), 597–602, 1989.
[4] Pishvaee, M.S., Zanjirani Farahani, R., Dullaert, W. (2010), A memetic algorithm for bi-objective integrated forward/reverse logistics network design, Computers & Operations Research, 37: 1100-1112.
[5] Amin S.H., Zhang G., "A multi-objective facility location model for closed-loop supply chain network under uncertain demand and return".Applied Mathematical Modelling, 37, 4165-4176, 2013.
[6] Hafeti, S.M. and Jolai, F., " Robust and Reliable Forward-Reverse Logistics Network Design under Demand Uncertainty and Facility Disruptions". Applied Mathematical Modelling., 38, 2630-2647, 2014.
[7] Keyvanshokooh, E., Fattahi, M., Hosseini, S.M.S. and Moghaddam, R.T., "A Dynamic Pricing Approach for Returned Products in Integrated Forward/Reverse Logistics Network Design". Applied Mathematical Modelling, 37,10182-10202, 2013.
[8] Devika, K., Jafarian, A. and Nourbakhash V., "Designing a Sustainable Closed-Loop Supply Chain Network Based on Triple Bottom Line Approach: A Comparison of Metaheuristics Hybridization Techniques". European Journal of Operational Research, 235(3), 594-615, 2014.
[9] Ramezani, M., Kimiagari, A.M., Karimi, B. and Hejazi, H.T., "Closed-loop supply chain network design under a fuzzy environment", Knowledge-Based Systems, 59, 108-120, 2014.
[10] Talaei, M., Moghaddam, B.F., Pishvaee, M.S., Bozorgi-Amiri, A., and Gholamnejad, S., "A robust fuzzy optimization model for carbon-efficient closed-loop supply chain network design problem: A numerical illustration in electronics industry", Journal of Cleaner Production, 113, 662-673, 2016.
[11] Fathollahi Fard, A.M., Gholian-Jouybari, F., Paydar, M.M., Hajiaghaei-Keshteli, M., "A Bi-Objective Stochastic Closed-loop Supply Chain Network Design Problem Considering Downside Risk". Industrial Engineering & Management Systems, 16(3), 342-362, 2017.
[12] Paydar, M.M., Babaveisi, V., Safaei, A.S., "An engine oil closed-loop supply chain design considering collection risk". Computers & Chemical Engineering, 104, 38-55, 2017.
[13] Safaei, A.S., Roozbeh, A., Paydar, M.M., "A robust optimization model for the design of a cardboard closed-loop supply chain". Journal of Cleaner Production, 166, 1154-1168, 2017.
[14] Fathollahi-Fard A, Hajiaghaei-Keshteli M, Mirjalili S., "Multi-objective stochastic closed-loop supply chain network design with social considerations", Applied Soft Computing, 71: 505-525, 2018.
[15] Ghomi-Avili, M Khosrojerdi, A Tavakkoli-Moghaddam, R, "A multi-objective model for the closed-loop supply chain network design with a price-dependent demand, shortage and disruption", Journal of Intelligent & Fuzzy Systems, 36: 5261-5272, 2019.
[16] Alizadeh M, Makui A, Paydar M M, "Forward and reverse supply chain network design for consumer medical supplies considering biological risk". Computers & Industrial Engineering, 140, 2020.
[17] Abdallah, T., Diabat, A., Simchi-Levi, D., "Sustainable supply chain design: a closed-loop formulation and sensitivity analysis". Production Planning & Control: The Management of Operations, 23(2.3), 120-133, 2012.
[18] Diabat A, Abdallah T, Henschel A., "A closed-loop location-inventory problem with spare parts consideration". Computers & Operations Research, 54, 245-256, 2015.
[19] Ahmadzadeh E,  Vahdani B., "A location-inventory pricing model in a closed loop supply chain network with correlated demands and shortages under a periodic review system", Computers & Chemical Engineering, 101: 148-166,2017.
[20] Guo H, Li C, Zhang Y, Zhang C and Lu M, "A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration", Sustainability,  volume 10, issue 6, 2018.
[21] Vahdani B, Ahmadzadeh E., "Designing a realistic ICT closed loop supply chain network with integrated decisions under uncertain demand and lead time", Knowledge-Based Systems ,179 : 34-54, 2019.
[22] Daskin, M.S., Coullard, C.R.and  
 Shen, Z.M., "An inventory-location model: formulation, solution algorithm and computational results". Annals of Operations Research, 110 (1), 83–106, 2002.
[23] Shen, Z.M., Coullard, C.R., and Daskin, M.S., "A joint location-inventory model". Transportation Science, 37 (1), 40–55, 2003.
[24] Miranda, P.A., and Garrido, R.A., "Incorporating inventory control decisions into a strategic distribution network design model with stochastic demand", Transportation Research Part E, Logistics and Transportation Review, 40 (3), 183–207, 2004.
[25] Sourirajan, K., Ozsen, L.,
and Uzsoy, R., "A single-product network design model with lead time and safety stock considerations". IIE Transactions, 39 (5), 411–424, 2007. [26] Sourirajan, K., Ozsen, L., and Uzsoy, R., "A genetic algorithm for a single product network design model with lead time and safety stock considerations", European Journal of Operational Research, 197 (2), 599–608, 2009.
[27] Vidyarthi, N., Çelebi, E., Elhedhli, S., Jewkes, E., "Integrated production-inventory-distribution system design with risk pooling: model formulation and heuristic solution". Transportation Science, 41 (3), 392–408, 2007.
[28] You, F., and Grossmann, I.E., "Mixed-integer nonlinear programming models and algorithms for large-scale supply chain design with stochastic inventory management". Industrial and Engineering Chemistry Research, 47 (20), 7802–7817, 2008.
[29] Federgruen, A., Zheng, Y.S., "An efficient algorithm for computing an optimal (r, Q) policy in continuous review stochastic inventory systems". Operations Research, 40 (4), 808–813. 1992.
[30] Zheng, Y.S., and Chen, F., "Inventory policies with quantized ordering". Naval Research Logistics, 39 (3), 285–305, 1992.
[31] Axster, S., "Using the deterministic EOQ formula in stochastic inventory control". Management Science 42 (6), 830–834, 1996.
[32] Zheng, Y.S., "On properties of stochastic inventory systems". Management Science, 38(1), 87–103, 1992.
[33] Elsayed, E.A., Boucher, T.O., "Analysis and Control of Production Systems (2nd ed)", Prentice-Hall, Englewood Cliffs, NJ, 1994
 
Volume 22, Issue 67
October 2020
Pages 4-22
  • Receive Date: 09 March 2020
  • Revise Date: 24 June 2020
  • Accept Date: 15 July 2020
  • Publish Date: 21 September 2020