A two-stage stochastic planning model for locating product collection centers in green logistics networks

Abstract

In this article, a model for locating product collection centers considering risk and environmental factors is presented. At first, a mixed integer programming model in deterministic conditions for the closed loop supply chain is presented to prevent the suboptimality resulting from considering these two chains separately by considering the forward and backward supply chain as a closed loop supply chain. Then, the effect of uncertainty in customer demand and the rate of returned products from customers in the network structure investigated by means of two-stage stochastic programming and based on the scenario-based method. Finally, the numerical results obtained from both models are presented, and the ability of the proposed stochastic model in using non-deterministic data has been examined.