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A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration

Author

Listed:
  • Hao Guo

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Congdong Li

    (School of Management, Jinan University, Guangzhou 510632, China)

  • Ying Zhang

    (Department of Industrial and Systems Engineering, The State University of New York at Buffalo, Buffalo, NY 14260, USA)

  • Chunnan Zhang

    (Department of Accounting, Temple University, Philadelphia, PA 19122, USA)

  • Mengmeng Lu

    (School of Information Management, Central China Normal University, Wuhan 430079, China)

Abstract

To design sustainable supply chain systems in today’s business environment, this paper studies a location-inventory problem in a closed-loop supply chain by considering the sales of new and used products in the primary and secondary markets, respectively. This problem is formulated as a mixed-integer nonlinear program to optimize facility location and inventory management decisions jointly, and the logistics flows between the two markets are modeled dynamically. To solve this problem efficiently, a new heuristic approach is also developed by introducing an effective adaptive mechanism into differential evolution. Finally, numerical experiments are presented to validate the solution approach and provide valuable managerial insight. This paper makes a meaningful contribution to the literature by incorporating the secondary market into the study of closed-loop supply chains, and practically, it is also greatly beneficial to improve the sustainability and efficiency of modern supply chains.

Suggested Citation

  • Hao Guo & Congdong Li & Ying Zhang & Chunnan Zhang & Mengmeng Lu, 2018. "A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1891-:d:150861
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    References listed on IDEAS

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    Cited by:

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    2. Pablo Becerra & Josefa Mula & Raquel Sanchis, 2022. "Sustainable Inventory Management in Supply Chains: Trends and Further Research," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    3. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    4. Feng, Lipan & Zheng, Xiong & Govindan, Kannan & Xue, Kelei, 2019. "Does the presence of secondary market platform really hurt the firm?," International Journal of Production Economics, Elsevier, vol. 213(C), pages 55-68.
    5. Congdong Li & Hao Guo & Ying Zhang & Shuai Deng & Yu Wang, 2018. "An Improved Differential Evolution Algorithm for a Multicommodity Location-Inventory Problem with False Failure Returns," Complexity, Hindawi, vol. 2018, pages 1-13, October.
    6. Hao Guo & Ying Zhang & Chunnan Zhang & Yu Liu & Yuan Zhou, 2020. "Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market," Annals of Operations Research, Springer, vol. 291(1), pages 361-386, August.
    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.

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