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Facility location and scale optimisation in closed-loop supply chain

Author

Listed:
  • Lu Zhen
  • Qiuji Sun
  • Kai Wang
  • Xiaotian Zhang

Abstract

This paper solves a strategic-level decision problem on determining the optimal location of (re)manufacturers and logistics centres with the consideration of facility scales in an integrated closed-loop supply chain network. A two-stage stochastic mixed-integer non-linear programming model is established to minimise the fixed cost and the expected operation costs under uncertain demand and return. We develop an improved tabu search heuristic algorithm to solve the model. We also design a distance-based decision rule to validate the effectiveness of the proposed model. Numerical experiments are conducted to test the performance of the proposed model and the solution method. In addition, sensitivity analysis is provided to investigate the influences of varying inspection locations and recovery rates on the final performance.

Suggested Citation

  • Lu Zhen & Qiuji Sun & Kai Wang & Xiaotian Zhang, 2019. "Facility location and scale optimisation in closed-loop supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 57(24), pages 7567-7585, December.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:24:p:7567-7585
    DOI: 10.1080/00207543.2019.1587189
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    Cited by:

    1. Jun-bin Wang & Lufei Huang, 2021. "A Game-Theoretic Analytical Approach for Fostering Energy-Saving Innovation in the Electric Vehicle Supply Chain," SAGE Open, , vol. 11(2), pages 21582440211, June.
    2. Petchprakai Sirilertsuwan & Sébastien Thomassey & Xianyi Zeng, 2020. "A Strategic Location Decision-Making Approach for Multi-Tier Supply Chain Sustainability," Sustainability, MDPI, vol. 12(20), pages 1-37, October.
    3. 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.
    4. Jaroslav Pluskal & Radovan Šomplák & Dušan Hrabec & Vlastimír Nevrlý & Lars Magnus Hvattum, 2022. "Optimal location and operation of waste-to-energy plants when future waste composition is uncertain," Operational Research, Springer, vol. 22(5), pages 5765-5790, November.
    5. Chunmei Ma & Dan Huang, 2020. "Research on the impact of green innovation alliance mode on decision-making of two-cycle closed-loop supply chain," Journal of Combinatorial Optimization, Springer, vol. 39(2), pages 519-546, February.
    6. Ali Pedram & Shahryar Sorooshian & Freselam Mulubrhan & Afshin Abbaspour, 2023. "Incorporating Vehicle-Routing Problems into a Closed-Loop Supply Chain Network Using a Mixed-Integer Linear-Programming Model," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    7. 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.
    8. Yang Hu, 2023. "Perspectives in closed-loop supply chains network design considering risk and uncertainty factors," Papers 2306.04819, arXiv.org.
    9. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).

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