Abstract
Demand plays a vital role in designing every closed-loop supply chain network in today's world. The flow of materials and commodities in the opposite direction of the standard supply chain is inevitable. In this way, this study addresses a new multi-echelon multi-period closed-loop supply chain network to minimize the total costs of the network. The echelons include suppliers, manufacturers, distribution centers, customers, and recycling and recovery units of components in the proposed network. Also, a Mixed Integer Linear Programming (MILP) model considering factories' vehicles and rental cars of transportation companies is formulated for the proposed problem. Moreover, for the first time, the demand for the products is estimated using an Auto-Regressive Integrated Moving Average (ARIMA) time series model to decrease the shortage that may happen in the whole supply chain network. Conversely, for solving the proposed model, the GAMS software is utilized in small and medium-size problems, and also, genetic algorithm is applied for large-size problems to obtain initial results of the model. Numerical results show that the proposed model is closer to the actual situation and could reach a reasonable solution in terms of service level, shortage, etc. Accordingly, sensitivity analysis is performed on essential parameters to show the performance of the proposed model. Finally, some potential topics are discussed for future study.
Highlights
The issue of designing the transportation network in the supply chain has attracted a lot of attention in today's competitive world (Chan et al 2016)
The issue of service level and the possibility of shortage and other related parameters and variables in the multi-period closed-loop supply chain network are discussed for the first time
There is NO seasonality patterns for the period that we have investigated our data for products
Summary
The issue of designing the transportation network in the supply chain has attracted a lot of attention in today's competitive world (Chan et al 2016). A new mathematical model for optimizing the closed-loop supply chain, whose main objectives including determination of the optimal amount of products and components in each segment of the network, minimizing the total cost of the system, optimizing the amount of transportation in the entire system has been proposed. This research aims to design a closed-loop supply chain network includes suppliers, manufacturers, distribution centers and customers, collection and disassembly centers, product, and component recovery units, as well as a facility for destruction and burial of damaged and polluting components. The issue of service level and the possibility of shortage and other related parameters and variables in the multi-period closed-loop supply chain network are discussed for the first time. Fourth section describes the solution algorithm and in the fifth section, the computational results are presented and the conclusion will be presented in sixth section
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