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Dual-Channel Global Closed-Loop Supply Chain Network Optimization Based on Random Demand and Recovery Rate

Author

Listed:
  • Aijun Liu

    (Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China)

  • Yan Zhang

    (Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China)

  • Senhao Luo

    (Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China)

  • Jie Miao

    (Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China)

Abstract

In the process of globalization, customer demand is usually difficult to predict, and product recycling is generally difficult to achieve accurately. It is also urgent to deal with increased inventory while avoiding shortages, with the purpose of reducing supply chain risks. This study analyzes the integrated supply chain decision-making problem in the random product demand and return environment. It proposes a multi-objective optimization model, which is an effective tool to solve the design and planning problems of the global closed-loop supply chain. It consists of a multi-period, single-product and multi-objective mixed integer linear programming model, which can solve some strategic decision problems, including the network structure, entity capacities, flow of products and components, and collection levels, as well as the inventory levels. From the perspective of economic, environmental and social benefits, three objective functions are defined, including maximizing the net present value (NPV) of the system, minimizing the total C O 2 e emissions of supply chain activities, and maximizing social sustainability indicators. Finally, a numerical example is provided to verify the advantages of this model, and sensitivity analysis results are provided. The results show that changes in product demand and return rate will have a great impact on economic and social performance.

Suggested Citation

  • Aijun Liu & Yan Zhang & Senhao Luo & Jie Miao, 2020. "Dual-Channel Global Closed-Loop Supply Chain Network Optimization Based on Random Demand and Recovery Rate," IJERPH, MDPI, vol. 17(23), pages 1-32, November.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:23:p:8768-:d:451103
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    References listed on IDEAS

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    Cited by:

    1. Yan Zhou & Xin-Tong Lin & Zhi-Ping Fan & Kar-Hung Wong, 2022. "Remanufacturing Strategy Choice of a Closed-Loop Supply Chain Network Considering Carbon Emission Trading, Green Innovation, and Green Consumers," IJERPH, MDPI, vol. 19(11), pages 1-42, June.
    2. Xuemei Zhang & Jiawei Hu & Suqin Sun & Guohu Qi, 2022. "Extended Warranty Strategy and Its Environment Impact of Remanufactured Supply Chain," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    3. Lingli Shu & Xuedong Liang & Jingyuan Yao & Peng Luo, 2023. "Price Optimization of Closed-loop Supply Chain With Uncertain Demand Under Multi-channel Cross Influence," SAGE Open, , vol. 13(4), pages 21582440231, December.
    4. Yang Hu, 2023. "Perspectives in closed-loop supply chains network design considering risk and uncertainty factors," Papers 2306.04819, arXiv.org.

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