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A Nonlinear Integer Programming Model for Integrated Location, Inventory, and Routing Decisions in a Closed-Loop Supply Chain

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  • Hao Guo
  • Congdong Li
  • Ying Zhang
  • Chunnan Zhang
  • Yu Wang

Abstract

Facility location, inventory management, and vehicle routing are three important decisions in supply chain management, and location-inventory-routing problems consider them jointly to improve the performance and efficiency of today’s supply chain networks. In this paper, we study a location-inventory-routing problem to minimize the total cost in a closed-loop supply chain that has forward and reverse logistics flows. First, we formulate this problem as a nonlinear integer programming model to optimize facility location, inventory control, and vehicle routing decisions simultaneously in such a system. Second, we develop a novel heuristic approach that incorporates simulated annealing into adaptive genetic algorithm to solve the model efficiently. Last, numerical analysis is presented to validate our solution approach, and it also provides meaningful managerial insight into how to improve the closed-loop supply chain under study.

Suggested Citation

  • 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.
    • Handle: RePEc:hin:complx:2726070
    DOI: 10.1155/2018/2726070
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    References listed on IDEAS

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    1. Mostard, Julien & Teunter, Ruud, 2006. "The newsboy problem with resalable returns: A single period model and case study," European Journal of Operational Research, Elsevier, vol. 169(1), pages 81-96, February.
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    Cited by:

    1. Fangyu Chen & Gangyan Xu & Yongchang Wei, 2019. "An Integrated Metaheuristic Routing Method for Multiple-Block Warehouses with Ultranarrow Aisles and Access Restriction," Complexity, Hindawi, vol. 2019, pages 1-14, June.
    2. 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.
    3. Lihua Liu & Lai Soon Lee & Hsin-Vonn Seow & Chuei Yee Chen, 2022. "Logistics Center Location-Inventory-Routing Problem Optimization: A Systematic Review Using PRISMA Method," Sustainability, MDPI, vol. 14(23), pages 1-39, November.
    4. Di Wu & Xuejun Ji & Fang Xiao & Shijie Sheng, 2022. "A Location Inventory Routing Optimisation Model and Algorithm for a Remote Island Shipping Network considering Emergency Inventory," Sustainability, MDPI, vol. 14(10), pages 1-22, May.
    5. Ali Heidari & Din Mohammad Imani & Mohammad Khalilzadeh & Mahdieh Sarbazvatan, 2023. "Green two-echelon closed and open location-routing problem: application of NSGA-II and MOGWO metaheuristic approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9163-9199, September.

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