IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v318y2022i1d10.1007_s10479-022-04661-z.html
   My bibliography  Save this article

Sustainable closed-loop supply chain with energy efficiency: Lagrangian relaxation, reformulations and heuristics

Author

Listed:
  • Hamed Soleimani

    (The University of Melbourne
    Islamic Azad University)

  • Prem Chhetri

    (RMIT University)

  • Amir M. Fathollahi-Fard

    (University of Quebec)

  • S. M. J. Mirzapour Al-e-Hashem

    (Rennes School of Business)

  • Shahrooz Shahparvari

    (RMIT University)

Abstract

Research on the development of sustainable supply chain models is highly active nowadays. Merging the concept of supply chain management with sustainable development goals, leads to simultaneous consideration of all economic, environmental and social factors. This paper addresses the design of a sustainable closed-loop supply chain including suppliers, manufacturers, distribution centers, customer zones, and disposal centers considering the consumption of energy. In addition, the distribution centers play the roles of warehouse and collection centers. The problem involves three choices of remanufacturing, recycling, and disposing the returned items. The objectives are including the total profit, energy consumption and the number of created job opportunities. As far as we know, these objectives are rarely considered in a sustainable closed-loop supply chain model. The proposed model also responds to the customer demand and also addresses the real-life constraints for location, allocation and inventory decisions in a closed-loop supply chain framework. Another novelty of this research is to develop a set of efficient Lagrangian relaxation reformulations and fast heuristics for solving a real-world numerical example. The results have revealed that the obtained solution is feasible and the developed solution algorithm is highly efficient for solving supply chain models. Finally, a comprehensive discussion is provided to highlight our findings and managerial insights from our results.

Suggested Citation

  • Hamed Soleimani & Prem Chhetri & Amir M. Fathollahi-Fard & S. M. J. Mirzapour Al-e-Hashem & Shahrooz Shahparvari, 2022. "Sustainable closed-loop supply chain with energy efficiency: Lagrangian relaxation, reformulations and heuristics," Annals of Operations Research, Springer, vol. 318(1), pages 531-556, November.
    • Handle: RePEc:spr:annopr:v:318:y:2022:i:1:d:10.1007_s10479-022-04661-z
    DOI: 10.1007/s10479-022-04661-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04661-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04661-z?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Salema, Maria Isabel Gomes & Barbosa-Povoa, Ana Paula & Novais, Augusto Q., 2007. "An optimization model for the design of a capacitated multi-product reverse logistics network with uncertainty," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1063-1077, June.
    2. Keyvanshokooh, Esmaeil & Ryan, Sarah M. & Kabir, Elnaz, 2016. "Hybrid robust and stochastic optimization for closed-loop supply chain network design using accelerated Benders decomposition," European Journal of Operational Research, Elsevier, vol. 249(1), pages 76-92.
    3. Mohammad Asghari & Amir M. Fathollahi-Fard & S. M. J. Mirzapour Al-e-hashem & Maxim A. Dulebenets, 2022. "Transformation and Linearization Techniques in Optimization: A State-of-the-Art Survey," Mathematics, MDPI, vol. 10(2), pages 1-26, January.
    4. Ringuest, Jeffrey L., 1997. "LP-metric sensitivity analysis for single and multi-attribute decision analysis," European Journal of Operational Research, Elsevier, vol. 98(3), pages 563-570, May.
    5. Zailani, Suhaiza & Jeyaraman, K. & Vengadasan, G. & Premkumar, R., 2012. "Sustainable supply chain management (SSCM) in Malaysia: A survey," International Journal of Production Economics, Elsevier, vol. 140(1), pages 330-340.
    6. V Jayaraman & V D R Guide & R Srivastava, 1999. "A closed-loop logistics model for remanufacturing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(5), pages 497-508, May.
    7. Marshall L. Fisher, 1985. "An Applications Oriented Guide to Lagrangian Relaxation," Interfaces, INFORMS, vol. 15(2), pages 10-21, April.
    8. Ameknassi, Lhoussaine & Aït-Kadi, Daoud & Rezg, Nidhal, 2016. "Integration of logistics outsourcing decisions in a green supply chain design: A stochastic multi-objective multi-period multi-product programming model," International Journal of Production Economics, Elsevier, vol. 182(C), pages 165-184.
    9. Spengler, Th. & Puchert, H. & Penkuhn, T. & Rentz, O., 1997. "Environmental integrated production and recycling management," European Journal of Operational Research, Elsevier, vol. 97(2), pages 308-326, March.
    10. Amir Mohammad Fathollahi-Fard & Abbas Ahmadi & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2020. "Sustainable closed-loop supply chain network for an integrated water supply and wastewater collection system under uncertainty," Post-Print hal-03004754, HAL.
    11. Rui Fragoso & José Rui Figueira, 2021. "Sustainable supply chain network design: An application to the wine industry in Southern Portugal," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(6), pages 1236-1251, June.
    12. Govindan, Kannan & Fattahi, Mohammad, 2017. "Investigating risk and robustness measures for supply chain network design under demand uncertainty: A case study of glass supply chain," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 680-699.
    13. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    14. Cruz-Rivera, Reynaldo & Ertel, Jürgen, 2009. "Reverse logistics network design for the collection of End-of-Life Vehicles in Mexico," European Journal of Operational Research, Elsevier, vol. 196(3), pages 930-939, August.
    15. Hasani, Aliakbar & Khosrojerdi, Amirhossein, 2016. "Robust global supply chain network design under disruption and uncertainty considering resilience strategies: A parallel memetic algorithm for a real-life case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 20-52.
    16. Santoso, Tjendera & Ahmed, Shabbir & Goetschalckx, Marc & Shapiro, Alexander, 2005. "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, Elsevier, vol. 167(1), pages 96-115, November.
    17. 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.
    18. Lee, Der-Horng & Dong, Meng & Bian, Wen, 2010. "The design of sustainable logistics network under uncertainty," International Journal of Production Economics, Elsevier, vol. 128(1), pages 159-166, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahsa Taherifar & Negin Hasani & Mahsa Zokaee & Amir Aghsami & Fariborz Jolai, 2024. "A scenario-based sustainable dual-channel closed-loop supply chain design with pickup and delivery considering social conditions in a natural disaster under uncertainty: a real-life case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19443-19490, August.
    2. Shyamali Ghosh & Sankar Kumar Roy & Gerhard-Wilhelm Weber, 2023. "Interactive strategy of carbon cap-and-trade policy on sustainable multi-objective solid transportation problem with twofold uncertain waste management," Annals of Operations Research, Springer, vol. 326(1), pages 157-197, July.
    3. Milan Andrejić, 2023. "Modeling Retail Supply Chain Efficiency: Exploration and Comparative Analysis of Different Approaches," Mathematics, MDPI, vol. 11(7), pages 1-24, March.
    4. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).

    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. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    2. Walther, Grit & Schatka, Anne & Spengler, Thomas S., 2012. "Design of regional production networks for second generation synthetic bio-fuel – A case study in Northern Germany," European Journal of Operational Research, Elsevier, vol. 218(1), pages 280-292.
    3. Van Engeland, Jens & Beliën, Jeroen & De Boeck, Liesje & De Jaeger, Simon, 2020. "Literature review: Strategic network optimization models in waste reverse supply chains," Omega, Elsevier, vol. 91(C).
    4. Fattahi, Mohammad & Govindan, Kannan & Keyvanshokooh, Esmaeil, 2017. "Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 176-200.
    5. Vahab Vahdat & Mohammad Ali Vahdatzad, 2017. "Accelerated Benders’ Decomposition for Integrated Forward/Reverse Logistics Network Design under Uncertainty," Logistics, MDPI, vol. 1(2), pages 1-21, December.
    6. Schweiger, Katharina & Sahamie, Ramin, 2013. "A hybrid Tabu Search approach for the design of a paper recycling network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 98-119.
    7. De Rosa, Vincenzo & Gebhard, Marina & Hartmann, Evi & Wollenweber, Jens, 2013. "Robust sustainable bi-directional logistics network design under uncertainty," International Journal of Production Economics, Elsevier, vol. 145(1), pages 184-198.
    8. Keyvanshokooh, Esmaeil & Ryan, Sarah M. & Kabir, Elnaz, 2016. "Hybrid robust and stochastic optimization for closed-loop supply chain network design using accelerated Benders decomposition," European Journal of Operational Research, Elsevier, vol. 249(1), pages 76-92.
    9. Baptista, Susana & Barbosa-Póvoa, Ana Paula & Escudero, Laureano F. & Gomes, Maria Isabel & Pizarro, Celeste, 2019. "On risk management of a two-stage stochastic mixed 0–1 model for the closed-loop supply chain design problem," European Journal of Operational Research, Elsevier, vol. 274(1), pages 91-107.
    10. Yongbo Li & Devika Kannan & P. C. Jha & Kiran Garg & Jyoti Darbari & Neha Agarwal, 2023. "Design of a multi echelon product recovery embeded reverse logistics network for multi products and multi periods," Annals of Operations Research, Springer, vol. 323(1), pages 131-152, April.
    11. 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.
    12. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    13. Alikhani, Reza & Ranjbar, Amirhossein & Jamali, Amir & Torabi, S. Ali & Zobel, Christopher W., 2023. "Towards increasing synergistic effects of resilience strategies in supply chain network design," Omega, Elsevier, vol. 116(C).
    14. Javid Jouzdani & Mohammad Fathian & Ahmad Makui & Mehdi Heydari, 2020. "Robust design and planning for a multi-mode multi-product supply network: a dairy industry case study," Operational Research, Springer, vol. 20(3), pages 1811-1840, September.
    15. Mojtaba Farrokh & Ehsan Ahmadi & Minghe Sun, 2023. "A robust stochastic possibilistic programming model for dynamic supply chain network design with pricing and technology selection decisions," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1082-1120, September.
    16. Fattahi, Mohammad & Mosadegh, Hadi & Hasani, Aliakbar, 2021. "Sustainable planning in mining supply chains with renewable energy integration: A real-life case study," Resources Policy, Elsevier, vol. 74(C).
    17. Vidovic, Milorad & Dimitrijevic, Branka & Ratkovic, Branislava & Simic, Vladimir, 2011. "A novel covering approach to positioning ELV collection points," Resources, Conservation & Recycling, Elsevier, vol. 57(C), pages 1-9.
    18. Alzaman, Chaher & Zhang, Zhi-Hai & Diabat, Ali, 2018. "Supply chain network design with direct and indirect production costs: Hybrid gradient and local search based heuristics," International Journal of Production Economics, Elsevier, vol. 203(C), pages 203-215.
    19. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2016. "Accelerating Benders decomposition for closed-loop supply chain network design: Case of used durable products with different quality levels," European Journal of Operational Research, Elsevier, vol. 251(3), pages 830-845.
    20. Mohammad Fattahi, 2020. "A data-driven approach for supply chain network design under uncertainty with consideration of social concerns," Annals of Operations Research, Springer, vol. 288(1), pages 265-284, May.

    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:spr:annopr:v:318:y:2022:i:1:d:10.1007_s10479-022-04661-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.