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A bi-criteria model for closed loop supply chain network design

Author

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  • Subramanian Pazhani
  • A. Ravi Ravindran

Abstract

Closed loop supply chains (CLSC) are the integration of both forward and reverse supply chains. The integration is important as independent operations and management of forward and reverse supply chains lead to a reduction in efficiency in the supply chain as a whole. This article considers a four-stage CLSC network with commercial returns, which could be potentially recovered by light repair operations or by refurbishing. The annual estimate of commercial returns in the USA is in excess of $100 billion. This paper discusses the optimal design of a CLSC network with the objectives of maximising the profit of the supply chain and minimising the energy usage at the warehousing facilities and energy consumed during transportation. A bi-criteria mixed integer linear programming (MILP) model is developed to determine the optimal locations of the facilities and the distribution of flows between facilities in the CLSC. We propose an interactive optimisation algorithm to systematically solve the bi-criteria problem which poses less cognitive burden on the decision maker and converges faster to the best compromise solution.

Suggested Citation

  • Subramanian Pazhani & A. Ravi Ravindran, 2018. "A bi-criteria model for closed loop supply chain network design," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 31(3), pages 330-356.
    • Handle: RePEc:ids:ijores:v:31:y:2018:i:3:p:330-356
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    Cited by:

    1. 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.

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