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A chance constrained closed-loop supply chain network design considering inventory-location problem

Author

Listed:
  • Mehdi Biuki
  • Parisa Mostafazadeh
  • Shiva Zandkarimkhani
  • Hassan Mina

Abstract

The design of reverse supply chain networks is one of the major solutions for the reduction of solid waste and use of resources for producing product to a lesser extent. The design of a reverse supply chain network leads to reduced costs in addition to reducing environmental detrimental effects. Therefore, this paper seeks to develop a mixed integer linear programming (MILP) model for designing a closed-loop supply chain network (CLSCN) under uncertainty. The study network is multi-product, multi-period and multi-echelon wherein the possibility of storage and facing shortage in the back-order type has been considered. An approach based on chance constrained is applied for controlling uncertainty. In order to investigate the efficiency of the proposed model, we implemented it in an automotive manufacturing industry in Iran where the results of model implementation through real-world data in GAMS software, as well as the results of sensitivity analysis of demand values indicate the precise function and the accuracy of the results.

Suggested Citation

  • Mehdi Biuki & Parisa Mostafazadeh & Shiva Zandkarimkhani & Hassan Mina, 2022. "A chance constrained closed-loop supply chain network design considering inventory-location problem," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 44(1), pages 102-121.
    • Handle: RePEc:ids:ijores:v:44:y:2022:i:1:p:102-121
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