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Robust Facility Location Selection Under Facility Failure in Close-Loop Supply Chain

In: City, Society, and Digital Transformation

Author

Listed:
  • Jianzhi Leng

    (Beijing Institute of Technology)

  • Lun Ran

    (Beijing Institute of Technology)

  • Zihao Jiao

    (Beijing Technology and Business University)

Abstract

Public health emergencies, along with worldwide disasters, have been weakening the supply chain’s upstream and downstream connections, further threatening the effective operation of facilities. In the closed-loop supply chain of the new energy industry, the failure of intermediate facilities will not only triggers a jump in holding costs, but also affect the supply of raw materials for the following productions. To this end, we develop a two-stage distributed robust optimization model to optimize the location of intermediate facilities in the closed-loop supply chain, and provides an optimal solution for the decision-making of raw material recycling and remanufacturing and the investment ratio of recycling process. We also conduct a case study in Shandong Province, China, and collects relevant data about local impacts of Covid-19 to conduct facility failure simulations. Numerical results show that the model has a more sensitive response to the combination setting of different parameters, and gives the best decision-making scheme considering the worst risk level.

Suggested Citation

  • Jianzhi Leng & Lun Ran & Zihao Jiao, 2022. "Robust Facility Location Selection Under Facility Failure in Close-Loop Supply Chain," Lecture Notes in Operations Research, in: Robin Qiu & Wai Kin Victor Chan & Weiwei Chen & Youakim Badr & Canrong Zhang (ed.), City, Society, and Digital Transformation, chapter 0, pages 303-316, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-15644-1_23
    DOI: 10.1007/978-3-031-15644-1_23
    as

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