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Closed-Loop Supply Chain Network Design with Flexible Capacity under Uncertain Environment

Author

Listed:
  • Chang Liu

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Ying Ji

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Xinqi Li

    (School of Management, Shanghai University, Shanghai 200444, China)

Abstract

This paper incorporates flexible facility capacity and government subsidy factors into the consideration of the design of a closed-loop supply chain(CLSC) network based on an uncertain environment. Considering the minimization of economic cost and carbon emission, a multi-objective multi-period multi-product mixed integer linear programming model with fixed and flexible facility capacity is constructed respectively. The robust optimization method is applied to deal with the uncertain environment of demand, recycled product quality, and recycling rate faced by the CLSC, and the robust models under six uncertain sets are constructed respectively. For model solving, the designed algorithm uses the augmented ϵ -constraint method to handle multi-objective problems and introduces a three-stage method on top of the Benders decomposition algorithm to accelerate the efficiency of solving the main problem. Finally, through numerical cases, a CSLC with a flexible supply strategy can manage economic and environmental costs to cope with the negative impacts of an uncertain environment, while this paper verifies the effectiveness of the government subsidy strategy under different conditions and analyzes the potential limitations.

Suggested Citation

  • Chang Liu & Ying Ji & Xinqi Li, 2023. "Closed-Loop Supply Chain Network Design with Flexible Capacity under Uncertain Environment," Sustainability, MDPI, vol. 15(19), pages 1-38, October.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14565-:d:1255215
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    References listed on IDEAS

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    1. Scheller, Christian & Schmidt, Kerstin & Spengler, Thomas S., 2023. "Effects of network structures on the production planning in closed-loop supply chains – A case study based analysis for lithium-ion batteries in Europe," International Journal of Production Economics, Elsevier, vol. 262(C).
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    3. Qiang Yue & Xicui Chai & Yujie Zhang & Qi Wang & Heming Wang & Feng Zhao & Wei Ji & Yuqi Lu, 2023. "Analysis of iron and steel production paths on the energy demand and carbon emission in China’s iron and steel industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4065-4085, May.
    4. Shraddha Mishra & Surya Prakash Singh, 2022. "Designing dynamic reverse logistics network for post-sale service," Annals of Operations Research, Springer, vol. 310(1), pages 89-118, March.
    5. Arabi, Mahsa & Gholamian, Mohammad Reza, 2023. "Resilient closed-loop supply chain network design considering quality uncertainty: A case study of stone quarries," Resources Policy, Elsevier, vol. 80(C).
    6. Martí, Joana M. Comas & Tancrez, Jean-Sébastien & Seifert, Ralf W., 2015. "Carbon footprint and responsiveness trade-offs in supply chain network design," International Journal of Production Economics, Elsevier, vol. 166(C), pages 129-142.
    7. 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.
    8. 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.
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    Cited by:

    1. Boyi Zhang & Shaojian Qu, 2023. "Green Supply Chain Game: Decision-Making and Coordination Mechanism Design," Sustainability, MDPI, vol. 15(21), pages 1-25, November.
    2. Nan Xu & Yaoqun Xu & Haiyan Zhong, 2023. "Pricing Decisions for Power Battery Closed-Loop Supply Chains with Low-Carbon Input by Echelon Utilization Enterprises," Sustainability, MDPI, vol. 15(23), pages 1-30, December.

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