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An Experimental Research on Closed Loop Supply Chain Management with Internet of Things

Author

Listed:
  • Turan PAKSOY

    (Selcuk University, Turkey.)

  • Ýsmail KARAOÐLAN
  • Hadi GÖKÇEN
  • Panos M. PARDALOS
  • Belkýs TORÐUL

Abstract

Closed loop supply chain (CLSC) optimization is integration of forward and reverse logistics activities. The importance of CLSC management is increasing by legal regulations, limited energy resources and environmental- financial problems that growing in recent years. However, reverse logistics part of the CLSC is a flow type which is more difficult to made predictions, planning and controls by reason contained uncertainties. This stage, Internet of Things system reduces related uncertainties by providing all the life information of the returned product and substantially attenuates planning of reverse flow activities. In this study, a CLSC is considered that meets demands of the sales&collection center both new and remanufactured product. Manufacturer has three options (refurbishing, disassembly and disposal) to assessing returned products. A mixed integer linear programming model is proposed for a single type of product is completely modular (automobile, computer, telephone, etc.). The model meets customer's products and components demands based period, maximizes profit consist of different sales revenues and total cost (total production, purchase, transportation and disposal costs) and determines how to evaluate all returned products. The proposed model has been verified with the aid of a numerical example by solving in GAMS software and its performance reviewed with experimental studies.

Suggested Citation

  • Turan PAKSOY & Ýsmail KARAOÐLAN & Hadi GÖKÇEN & Panos M. PARDALOS & Belkýs TORÐUL, 2016. "An Experimental Research on Closed Loop Supply Chain Management with Internet of Things," Journal of Economics Bibliography, KSP Journals, vol. 3(1S), pages 1-20, April.
    • Handle: RePEc:ksp:journ6:v:3:y:2016:i:1s:p:1-20
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    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. Yang, Guang-fen & Wang, Zhi-ping & Li, Xiao-qiang, 2009. "The optimization of the closed-loop supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 16-28, January.
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    Cited by:

    1. Christos I. Papanagnou, 2022. "Measuring and eliminating the bullwhip in closed loop supply chains using control theory and Internet of Things," Annals of Operations Research, Springer, vol. 310(1), pages 153-170, March.
    2. Alqahtani, Ammar Y. & Gupta, Surendra M. & Nakashima, Kenichi, 2019. "Warranty and maintenance analysis of sensor embedded products using internet of things in industry 4.0," International Journal of Production Economics, Elsevier, vol. 208(C), pages 483-499.

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    More about this item

    Keywords

    Closed loop supply chain optimization; Internet of Things; Mixedinteger linear programming; Returned product management.;
    All these keywords.

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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