Abstract
As the importance of forward-reverse logistics increases, attention will be focused on parameters which affect Net Present Value (NPV) of the whole system, aiming at considering the time value of money in planning. In this research, an NPV optimization model for multi-period multi-product closed-loop supply chain network design and planning is developed to maximize the total NPV. The effect of interest rates on profit and performance, the effect of the maximum return ratio on the overall NPV of the system and the effect of interest rate change on the network configuration are studied.
Highlights
Companies nowadays have attracted the attention towards the performance and benefits of the forwardreverse supply chain
The results of the proposed model with the objective of maximizing the Net Present Value (NPV) of the CLSCN for multi-periods and multi-products are introduced
This means that the variation of the interest rate does not have a great influence on the design of the supply chain structure under study, but it has an effect on the transferred quantities due to taking the time value of money into consideration
Summary
Companies nowadays have attracted the attention towards the performance and benefits of the forwardreverse supply chain. Baptista et al (2013) studied the impact uncertainties which of transportation costs, demand and return volumes on the total expected supply chain profit Applying their model to a case study, they solved two scenarios normal and worst case. Diabet et al (2013) developed a Mixed Integer NonLinear Programming (MINLP) model for product returns to minimize the total reverse logistics cost. They implemented and compared the genetic algorithm and artificial immune system for solving the model and demonstrated the application of the model. The present work develops an MILP model to design and plan the multi-period, multi-product closed loop supply chain network design in order to maximize the net present value.
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