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Multi-objective optimisation of facility location decisions within integrated forward/reverse logistics under uncertainty

Author

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  • Hamid Afshari
  • Masoud Sharafi
  • Tarek Y. ElMekkawy
  • Qingjin Peng

Abstract

Increasing interest to the environmental, social and economic aspects of the supply chains has motivated supply chain managers to optimise location-allocation decisions within closed-loop logistics networks. This paper presents a multi-objective model to optimise facility location decisions in integrated forward/reverse streams under uncertainty. The objectives of the model are to minimise total costs and simultaneously maximise customer satisfaction considering uncertainties in demand and return rate. The proposed model is solved by integrating genetic algorithm with sampling average method. The application of the model is examined in a real case study of car after sales network. The result of the model is compared to a deterministic model to identify how uncertainties affect the optimal configurations. The other experiment is carried out to study the effect of integrating forward and reverse logistics operations on the stakeholder's objectives. Finally, a post-analysis is applied to help in choosing one solution among many different solutions.

Suggested Citation

  • Hamid Afshari & Masoud Sharafi & Tarek Y. ElMekkawy & Qingjin Peng, 2016. "Multi-objective optimisation of facility location decisions within integrated forward/reverse logistics under uncertainty," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 8(3), pages 250-276.
    • Handle: RePEc:ids:ijbpsc:v:8:y:2016:i:3:p:250-276
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    Cited by:

    1. Carlos A. Moreno-Camacho & Jairo R. Montoya-Torres & Anicia Jaegler, 2023. "Sustainable supply chain network design: a study of the Colombian dairy sector," Annals of Operations Research, Springer, vol. 324(1), pages 573-599, May.
    2. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    3. V. Sathiya & M. Chinnadurai & S. Ramabalan & Andrea Appolloni, 2021. "Mobile robots and evolutionary optimization algorithms for green supply chain management in a used-car resale company," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 9110-9138, June.

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