Abstract
The depletion of natural resources and the degradation of the ecosystem have led many countries to adopt closed-loop supply activities in both their industrial and service sectors. With the widespread use of Internet technology, these aspects motivate the incorporation of e-commerce with the classical closed-loop supply chain. This study suggests a novel mixed-integer linear programming (MILP) model that addresses the integration of e-commerce with a multi-echelon closed-loop supply chain with a multi-period planning time horizon by considering dual channels in manufacturing, and recovery facilities. To validate the model, we obtain optimal decision variables and examine the robustness and applicability of the model, and comprehensive computational experiments are performed. Moreover, sensitivity analysis is carried out to illustrate the efficacy of e-commerce integration by considering the two channels in the closed-loop supply chain. Accordingly, the total cost of the dual-channel CLSC decreases with an increase in customer demand via online retailers, the returned end of life (EOL) products, recycling ratio, and recovery ratio. Some useful managerial implications are provided based on the conducted analysis.
Highlights
In recent years, governments have been applying pressure and refining legislation to encourage organizations and a broad sector of customers to adopt green and sustainable practices in their production and service activities
We present a novel mixed-integer linear programming (MILP) model of the closed-loop supply chain (CLSC) with the consideration of the dual channel of the traditional and online retailers in both forward and reverse logistics, which aims at minimizing the total cost of shipment, purchasing, operations, and fixed costs
The remainder of the paper is organized as follows: Section 2 presents a literature review of the previous studies pertaining to the design and optimization of supply chains networks, Section 3 provides a description of the on-hand problem, handling the strategic and tactical design of the proposed dual-channel CLSC, Section 4 shows the mathematical formulation of the dual-channel CLSC, Section 5 discusses the computational experiments performed on the proposed model, and Section 6 concludes the paper
Summary
Governments have been applying pressure and refining legislation to encourage organizations and a broad sector of customers to adopt green and sustainable practices in their production and service activities This is to handle the population growth, which requires more products to be manufactured, resulting in the limited availability of raw materials and an increase in the rate of pollution emissions [1,2]. The integration of e-commerce activities into both forward and reverse supply chains; the development of an MILP model that considers the dual channel of both traditional and online retailers through manufacturing and recovery facilities; a sensitivity analysis study of the key parameters associated with traditional and online retailers, and exploring their effect on the total cost and number of open traditional retailers. The remainder of the paper is organized as follows: Section 2 presents a literature review of the previous studies pertaining to the design and optimization of supply chains networks, Section 3 provides a description of the on-hand problem, handling the strategic and tactical design of the proposed dual-channel CLSC, Section 4 shows the mathematical formulation of the dual-channel CLSC, Section 5 discusses the computational experiments performed on the proposed model, and Section 6 concludes the paper
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