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An integrated location-inventory problem in a closed-loop supply chain with third-party logistics

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  • Yanhui Li
  • Hao Guo
  • Ying Zhang

Abstract

Third-party logistics (3PL) is a fast growing business. Many large organisations are using 3PL services to reduce operating costs, simplify business processes, and enhance operations and supply chain flexibility. In this paper, we study location-inventory decisions jointly in a closed-loop system with 3PL. First, a model formulation is proposed to develop mixed-integer non-linear programming (MINLP) models for the location-inventory problem under study. Then, a novel heuristics based on differential evolution and the genetic algorithm is designed to solve the MINLP models efficiently. Last, numerical study is presented to illustrate and validate the solution approach.

Suggested Citation

  • Yanhui Li & Hao Guo & Ying Zhang, 2018. "An integrated location-inventory problem in a closed-loop supply chain with third-party logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3462-3481, May.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:10:p:3462-3481
    DOI: 10.1080/00207543.2017.1338781
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    Cited by:

    1. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    2. 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.
    3. Zhiping Zuo & Yanhui Li & Jing Fu & Jianlin Wu, 2019. "Human Resource Scheduling Model and Algorithm with Time Windows and Multi-Skill Constraints," Mathematics, MDPI, vol. 7(7), pages 1-18, July.
    4. 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.
    5. Reddy, K. Nageswara & Kumar, Akhilesh & Choudhary, Alok & Cheng, T. C. Edwin, 2022. "Multi-period green reverse logistics network design: An improved Benders-decomposition-based heuristic approach," European Journal of Operational Research, Elsevier, vol. 303(2), pages 735-752.
    6. Xiaoyan Xu & Suresh P. Sethi & Sai‐Ho Chung & Tsan‐Ming Choi, 2023. "Reforming global supply chain management under pandemics: The GREAT‐3Rs framework," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 524-546, February.
    7. Wang, Wenbin & Yang, Siqi & Xu, Lei & Yang, Xiaoli, 2019. "Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 366-387.

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