IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v231y2021ics092552732030236x.html
   My bibliography  Save this article

Multi-product and multi-period closed loop supply chain network design under take-back legislation

Author

Listed:
  • Diabat, Ali
  • Jebali, Aida

Abstract

This paper addresses the closed loop supply chain (CLSC) network design problem for durable products with consideration of take-back legislation. Each returned end-of-life product can be dismantled into different components. A recovery option is adopted for each component based on its quality level, its economic value, and its environmental impact. First, a multi-product multi-period mixed integer linear programming (MIP) model is proposed while assuming a 100% recovery target. The latter is then extended in order to incorporate other take-back legislations: namely, regulation based on other recovery targets and regulation based on reward-penalty (RP) mechanisms. Sensitivity analysis is then carried out in order to capture how some model parameters influence the take-back decision, the integration of the reverse supply chain, and its structure when there are no regulatory restrictions on the take-back of returns. In addition, the CLSC performance, in terms of environment and economic efficiency, is investigated under different take-back legislations. For the considered case study, a comparative study shows that a higher reverse service level and CLSC profit can be achieved when a regulation based on RP mechanism is implemented.

Suggested Citation

  • Diabat, Ali & Jebali, Aida, 2021. "Multi-product and multi-period closed loop supply chain network design under take-back legislation," International Journal of Production Economics, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:proeco:v:231:y:2021:i:c:s092552732030236x
    DOI: 10.1016/j.ijpe.2020.107879
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732030236X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2020.107879?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhi-Hai Zhang & Gemma Berenguer & Zuo-Jun (Max) Shen, 2015. "A Capacitated Facility Location Model with Bidirectional Flows," Transportation Science, INFORMS, vol. 49(1), pages 114-129, February.
    2. Pati, Rupesh Kumar & Vrat, Prem & Kumar, Pradeep, 2008. "A goal programming model for paper recycling system," Omega, Elsevier, vol. 36(3), pages 405-417, June.
    3. Salema, Maria Isabel Gomes & Barbosa-Povoa, Ana Paula & Novais, Augusto Q., 2007. "An optimization model for the design of a capacitated multi-product reverse logistics network with uncertainty," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1063-1077, June.
    4. Zied Jemai & Rim Jerbia & Mouna Kchaou Boujelben & Mohamed Amine Sehli & Mohamed Amine Sehli, 2018. "A stochastic closed-loop supply chain network design problem with multiple recovery options," Post-Print hal-01742193, HAL.
    5. Halit Üster & Sung Ook Hwang, 2017. "Closed-Loop Supply Chain Network Design Under Demand and Return Uncertainty," Transportation Science, INFORMS, vol. 51(4), pages 1063-1085, November.
    6. Aras, Necati & Aksen, Deniz, 2008. "Locating collection centers for distance- and incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 111(2), pages 316-333, February.
    7. Wang, Wenbin & Zhang, Yu & Zhang, Kai & Bai, Tuo & Shang, Jennifer, 2015. "Reward–penalty mechanism for closed-loop supply chains under responsibility-sharing and different power structures," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 178-190.
    8. Aras, Necati & Aksen, Deniz & Gönül Tanugur, Ayse, 2008. "Locating collection centers for incentive-dependent returns under a pick-up policy with capacitated vehicles," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1223-1240, December.
    9. Hammond, David & Beullens, Patrick, 2007. "Closed-loop supply chain network equilibrium under legislation," European Journal of Operational Research, Elsevier, vol. 183(2), pages 895-908, December.
    10. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    11. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2016. "Accelerating Benders decomposition for closed-loop supply chain network design: Case of used durable products with different quality levels," European Journal of Operational Research, Elsevier, vol. 251(3), pages 830-845.
    12. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco & Verter, Vedat, 2012. "Multi-period reverse logistics network design," European Journal of Operational Research, Elsevier, vol. 220(1), pages 67-78.
    13. Shouxu Song & Ming Liu & Qingdi Ke & Haihong Huang, 2015. "Proactive remanufacturing timing determination method based on residual strength," International Journal of Production Research, Taylor & Francis Journals, vol. 53(17), pages 5193-5206, September.
    14. Halit Üster & Gopalakrishnan Easwaran & Elif Akçali & Sila Çetinkaya, 2007. "Benders decomposition with alternative multiple cuts for a multi‐product closed‐loop supply chain network design model," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(8), pages 890-907, December.
    15. Qin, Zhongfeng & Ji, Xiaoyu, 2010. "Logistics network design for product recovery in fuzzy environment," European Journal of Operational Research, Elsevier, vol. 202(2), pages 479-490, April.
    16. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    17. Lembke B., 1918. "√ a. p," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 111(1), pages 709-712, February.
    18. Jayaraman, Vaidyanathan & Patterson, Raymond A. & Rolland, Erik, 2003. "The design of reverse distribution networks: Models and solution procedures," European Journal of Operational Research, Elsevier, vol. 150(1), pages 128-149, October.
    19. Saeed Z. Gavidel & Jeremy L. Rickli, 2017. "Quality assessment of used-products under uncertain age and usage conditions," International Journal of Production Research, Taylor & Francis Journals, vol. 55(23), pages 7153-7167, December.
    20. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2017. "Closed-loop supply chain network design under uncertain quality status: Case of durable products," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 470-486.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan Zhou & Xue-Qi Liu & Kar-Hung Wong, 2021. "Remanufacturing Policies Options for a Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    2. Reddy, K. Nageswara & Kumar, Akhilesh & Choudhary, Alok & Cheng, T. C. Edwin, 2022. "Multi-period green reverse logistics network design: An improved Benders-decomposition-based heuristic approach," European Journal of Operational Research, Elsevier, vol. 303(2), pages 735-752.
    3. Guitao Zhang & Xiao Zhang & Hao Sun & Xinyu Zhao, 2021. "Three-Echelon Closed-Loop Supply Chain Network Equilibrium under Cap-and-Trade Regulation," Sustainability, MDPI, vol. 13(11), pages 1-26, June.
    4. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).
    5. Yuyan Wang & Tingting Yu & Rui Zhou, 2022. "The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain," IJERPH, MDPI, vol. 19(12), pages 1-26, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diabat, Ali & Kannan, Devika & Kaliyan, Mathiyazhagan & Svetinovic, Davor, 2013. "An optimization model for product returns using genetic algorithms and artificial immune system," Resources, Conservation & Recycling, Elsevier, vol. 74(C), pages 156-169.
    2. Van Engeland, Jens & Beliën, Jeroen & De Boeck, Liesje & De Jaeger, Simon, 2020. "Literature review: Strategic network optimization models in waste reverse supply chains," Omega, Elsevier, vol. 91(C).
    3. Agrawal, Saurabh & Singh, Rajesh K. & Murtaza, Qasim, 2015. "A literature review and perspectives in reverse logistics," Resources, Conservation & Recycling, Elsevier, vol. 97(C), pages 76-92.
    4. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    5. Gong, Hailei & Zhang, Zhi-Hai, 2022. "Benders decomposition for the distributionally robust optimization of pricing and reverse logistics network design in remanufacturing systems," European Journal of Operational Research, Elsevier, vol. 297(2), pages 496-510.
    6. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2017. "Closed-loop supply chain network design under uncertain quality status: Case of durable products," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 470-486.
    7. Anil Jindal & Kuldip Singh Sangwan, 2017. "Multi-objective fuzzy mathematical modelling of closed-loop supply chain considering economical and environmental factors," Annals of Operations Research, Springer, vol. 257(1), pages 95-120, October.
    8. Reddy, K. Nageswara & Kumar, Akhilesh & Choudhary, Alok & Cheng, T. C. Edwin, 2022. "Multi-period green reverse logistics network design: An improved Benders-decomposition-based heuristic approach," European Journal of Operational Research, Elsevier, vol. 303(2), pages 735-752.
    9. Ayvaz, Berk & Bolat, Bersam & Aydın, Nezir, 2015. "Stochastic reverse logistics network design for waste of electrical and electronic equipment," Resources, Conservation & Recycling, Elsevier, vol. 104(PB), pages 391-404.
    10. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2016. "Accelerating Benders decomposition for closed-loop supply chain network design: Case of used durable products with different quality levels," European Journal of Operational Research, Elsevier, vol. 251(3), pages 830-845.
    11. Vahab Vahdat & Mohammad Ali Vahdatzad, 2017. "Accelerated Benders’ Decomposition for Integrated Forward/Reverse Logistics Network Design under Uncertainty," Logistics, MDPI, vol. 1(2), pages 1-21, December.
    12. Guanshuang Jiang & Qi Wang & Ke Wang & Qianyu Zhang & Jian Zhou, 2020. "A Novel Closed-Loop Supply Chain Network Design Considering Enterprise Profit and Service Level," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    13. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    14. Vahdani, Behnam & Tavakkoli-Moghaddam, Reza & Modarres, Mohammad & Baboli, Armand, 2012. "Reliable design of a forward/reverse logistics network under uncertainty: A robust-M/M/c queuing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1152-1168.
    15. Xuehong Gao, 2019. "A Novel Reverse Logistics Network Design Considering Multi-Level Investments for Facility Reconstruction with Environmental Considerations," Sustainability, MDPI, vol. 11(9), pages 1-22, May.
    16. Baptista, Susana & Barbosa-Póvoa, Ana Paula & Escudero, Laureano F. & Gomes, Maria Isabel & Pizarro, Celeste, 2019. "On risk management of a two-stage stochastic mixed 0–1 model for the closed-loop supply chain design problem," European Journal of Operational Research, Elsevier, vol. 274(1), pages 91-107.
    17. Schweiger, Katharina & Sahamie, Ramin, 2013. "A hybrid Tabu Search approach for the design of a paper recycling network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 98-119.
    18. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    19. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    20. Zhang, Yanzi & Diabat, Ali & Zhang, Zhi-Hai, 2021. "Reliable closed-loop supply chain design problem under facility-type-dependent probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 180-209.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:231:y:2021:i:c:s092552732030236x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.