IDEAS home Printed from https://ideas.repec.org/a/hin/complx/1967398.html
   My bibliography  Save this article

An Improved Differential Evolution Algorithm for a Multicommodity Location-Inventory Problem with False Failure Returns

Author

Listed:
  • Congdong Li
  • Hao Guo
  • Ying Zhang
  • Shuai Deng
  • Yu Wang

Abstract

Customer returns are a common phenomenon in many industries, and they have a significant impact on business organizations and their supply chains. False failure returns are returned products that have no functional or cosmetic defects, and they represent a large body of customer returns in practice. In this paper, we develop a mixed-integer nonlinear programming model to study a multicommodity location-inventory problem in a forward-reverse logistics network. This model minimizes the total cost in this network by considering false failure returns, and it also considers many real-world business scenarios in forward and reverse logistics flows. Moreover, we design a new heuristic approach to solve the model efficiently. Finally, numerical experiments are conducted to validate our solution approach and provide meaningful managerial insights.

Suggested Citation

  • Congdong Li & Hao Guo & Ying Zhang & Shuai Deng & Yu Wang, 2018. "An Improved Differential Evolution Algorithm for a Multicommodity Location-Inventory Problem with False Failure Returns," Complexity, Hindawi, vol. 2018, pages 1-13, October.
    • Handle: RePEc:hin:complx:1967398
    DOI: 10.1155/2018/1967398
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/8503/2018/1967398.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/8503/2018/1967398.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2018/1967398?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
    ---><---

    References listed on IDEAS

    as
    1. Leyla Ozsen & Mark S. Daskin & Collette R. Coullard, 2009. "Facility Location Modeling and Inventory Management with Multisourcing," Transportation Science, INFORMS, vol. 43(4), pages 455-472, November.
    2. Jia Shu & Qiang Ma & Sijie Li, 2010. "Integrated location and two-echelon inventory network design under uncertainty," Annals of Operations Research, Springer, vol. 181(1), pages 233-247, December.
    3. V. Daniel R. Guide , Jr. & Gilvan C. Souza & Luk N. Van Wassenhove & Joseph D. Blackburn, 2006. "Time Value of Commercial Product Returns," Management Science, INFORMS, vol. 52(8), pages 1200-1214, August.
    4. Hao Guo & Congdong Li & Ying Zhang & Chunnan Zhang & Yu Wang, 2018. "A Nonlinear Integer Programming Model for Integrated Location, Inventory, and Routing Decisions in a Closed-Loop Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-17, July.
    5. Amiri-Aref, Mehdi & Klibi, Walid & Babai, M. Zied, 2018. "The multi-sourcing location inventory problem with stochastic demand," European Journal of Operational Research, Elsevier, vol. 266(1), pages 72-87.
    6. Gary D. Eppen, 1979. "Note--Effects of Centralization on Expected Costs in a Multi-Location Newsboy Problem," Management Science, INFORMS, vol. 25(5), pages 498-501, May.
    7. Zuo-Jun Max Shen & Collette Coullard & Mark S. Daskin, 2003. "A Joint Location-Inventory Model," Transportation Science, INFORMS, vol. 37(1), pages 40-55, February.
    8. Schuster Puga, Matías & Tancrez, Jean-Sébastien, 2017. "A heuristic algorithm for solving large location–inventory problems with demand uncertainty," European Journal of Operational Research, Elsevier, vol. 259(2), pages 413-423.
    9. Mark Daskin & Collette Coullard & Zuo-Jun Shen, 2002. "An Inventory-Location Model: Formulation, Solution Algorithm and Computational Results," Annals of Operations Research, Springer, vol. 110(1), pages 83-106, February.
    10. Mark Ferguson & V. Daniel R. Guide , Jr. & Gilvan C. Souza, 2006. "Supply Chain Coordination for False Failure Returns," Manufacturing & Service Operations Management, INFORMS, vol. 8(4), pages 376-393, August.
    11. Francisco Silva & Lucia Gao, 2013. "A Joint Replenishment Inventory-Location Model," Networks and Spatial Economics, Springer, vol. 13(1), pages 107-122, March.
    12. Hao Guo & Congdong Li & Ying Zhang & Chunnan Zhang & Mengmeng Lu, 2018. "A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    13. Reza Zanjirani Farahani & Hannaneh Rashidi Bajgan & Behnam Fahimnia & Mohamadreza Kaviani, 2015. "Location-inventory problem in supply chains: a modelling review," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3769-3788, June.
    Full references (including those not matched with items on IDEAS)

    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. Hao Guo & Ying Zhang & Chunnan Zhang & Yu Liu & Yuan Zhou, 2020. "Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market," Annals of Operations Research, Springer, vol. 291(1), pages 361-386, August.
    2. Aaron Guerrero Campanur & Elias Olivares-Benitez & Pablo A. Miranda & Rodolfo Eleazar Perez-Loaiza & Jose Humberto Ablanedo-Rosas, 2018. "Design of a Logistics Nonlinear System for a Complex, Multiechelon, Supply Chain Network with Uncertain Demands," Complexity, Hindawi, vol. 2018, pages 1-16, November.
    3. Schuster Puga, Matías & Minner, Stefan & Tancrez, Jean-Sébastien, 2019. "Two-stage supply chain design with safety stock placement decisions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 183-193.
    4. Tapia-Ubeda, Francisco J. & Miranda, Pablo A. & Macchi, Marco, 2018. "A Generalized Benders Decomposition based algorithm for an inventory location problem with stochastic inventory capacity constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 806-817.
    5. Darmawan, Agus & Wong, Hartanto & Thorstenson, Anders, 2021. "Supply chain network design with coordinated inventory control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    6. Behnam Vahdani & Elham Ahmadzadeh, 2021. "Incorporating Price-Dependent Demands into a Multi-Echelon Closed-Loop Network Considering the Lost Sales and Backorders: a Case Study of Wireless Network," Networks and Spatial Economics, Springer, vol. 21(3), pages 639-680, September.
    7. Zhang, Ying & Snyder, Lawrence V. & Qi, Mingyao & Miao, Lixin, 2016. "A heterogeneous reliable location model with risk pooling under supply disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 151-178.
    8. Zheng, Xiaojin & Yin, Meixia & Zhang, Yanxia, 2019. "Integrated optimization of location, inventory and routing in supply chain network design," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 1-20.
    9. Snoeck, André & Winkenbach, Matthias & Fransoo, Jan C., 2023. "On-demand last-mile distribution network design with omnichannel inventory," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    10. Amiri-Aref, Mehdi & Klibi, Walid & Babai, M. Zied, 2018. "The multi-sourcing location inventory problem with stochastic demand," European Journal of Operational Research, Elsevier, vol. 266(1), pages 72-87.
    11. Snoeck, André & Winkenbach, Matthias & Fransoo, Jan C., 2023. "On-demand last-mile distribution network design with omnichannel inventory," Other publications TiSEM 83b06c9f-2a65-4aaf-880b-2, Tilburg University, School of Economics and Management.
    12. Hao Guo & Congdong Li & Ying Zhang & Chunnan Zhang & Mengmeng Lu, 2018. "A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    13. Ross, Anthony & Khajehnezhad, Milad & Otieno, Wilkistar & Aydas, Osman, 2017. "Integrated location-inventory modelling under forward and reverse product flows in the used merchandise retail sector: A multi-echelon formulation," European Journal of Operational Research, Elsevier, vol. 259(2), pages 664-676.
    14. Ali Diabat & Jean-Philippe Richard, 2015. "An integrated supply chain problem: a nested lagrangian relaxation approach," Annals of Operations Research, Springer, vol. 229(1), pages 303-323, June.
    15. Shahabi, Mehrdad & Tafreshian, Amirmahdi & Unnikrishnan, Avinash & Boyles, Stephen D., 2018. "Joint production–inventory–location problem with multi-variate normal demand," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 60-78.
    16. Sainathuni, Bhanuteja & Parikh, Pratik J. & Zhang, Xinhui & Kong, Nan, 2014. "The warehouse-inventory-transportation problem for supply chains," European Journal of Operational Research, Elsevier, vol. 237(2), pages 690-700.
    17. Sun, Hao & Yang, Jun & Yang, Chao, 2019. "A robust optimization approach to multi-interval location-inventory and recharging planning for electric vehicles," Omega, Elsevier, vol. 86(C), pages 59-75.
    18. Navneet Vidyarthi & Emre Çelebi & Samir Elhedhli & Elizabeth Jewkes, 2007. "Integrated Production-Inventory-Distribution System Design with Risk Pooling: Model Formulation and Heuristic Solution," Transportation Science, INFORMS, vol. 41(3), pages 392-408, August.
    19. Puntipa Punyim & Ampol Karoonsoontawong & Avinash Unnikrishnan & Chi Xie, 2018. "Tabu Search Heuristic for Joint Location-Inventory Problem with Stochastic Inventory Capacity and Practicality Constraints," Networks and Spatial Economics, Springer, vol. 18(1), pages 51-84, March.
    20. Berman, Oded & Krass, Dmitry & Menezes, Mozart B.C., 2016. "Directed assignment vs. customer choice in location inventory models," International Journal of Production Economics, Elsevier, vol. 179(C), pages 179-191.

    More about this item

    Statistics

    Access and download statistics

    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:hin:complx:1967398. 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    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.