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Design and Optimization of the Dual-Channel Closed Loop Supply Chain with E-Commerce

Author

Listed:
  • Essam Kaoud

    (Department of Mechanical Engineering, Toyohashi University of Technology, Toyohashi 441-8580, Japan
    Mechanical Engineering Department, Faculty of Engineering, Assiut University, Assiut 71516, Egypt)

  • Mohammad A. M. Abdel-Aal

    (Systems Engineering Department, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia)

  • Tatsuhiko Sakaguchi

    (Department of Informatics, Faculty of Engineering, Kindai University, Higashi-Hiroshima 739-2116, Japan)

  • Naoki Uchiyama

    (Department of Mechanical Engineering, Toyohashi University of Technology, Toyohashi 441-8580, Japan)

Abstract

The depletion of natural resources and the degradation of the ecosystem have led many countries to adopt closed-loop supply activities in both their industrial and service sectors. With the widespread use of Internet technology, these aspects motivate the incorporation of e-commerce with the classical closed-loop supply chain. This study suggests a novel mixed-integer linear programming (MILP) model that addresses the integration of e-commerce with a multi-echelon closed-loop supply chain with a multi-period planning time horizon by considering dual channels in manufacturing, and recovery facilities. To validate the model, we obtain optimal decision variables and examine the robustness and applicability of the model, and comprehensive computational experiments are performed. Moreover, sensitivity analysis is carried out to illustrate the efficacy of e-commerce integration by considering the two channels in the closed-loop supply chain. Accordingly, the total cost of the dual-channel CLSC decreases with an increase in customer demand via online retailers, the returned end of life (EOL) products, recycling ratio, and recovery ratio. Some useful managerial implications are provided based on the conducted analysis.

Suggested Citation

  • Essam Kaoud & Mohammad A. M. Abdel-Aal & Tatsuhiko Sakaguchi & Naoki Uchiyama, 2020. "Design and Optimization of the Dual-Channel Closed Loop Supply Chain with E-Commerce," Sustainability, MDPI, vol. 12(23), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:23:p:10117-:d:456024
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    References listed on IDEAS

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