Developing a fuzzy linear programming model for locating recovery facility in a closed loop supply chain

Abstract

In this research a closed loop supply chain is designed which incorporates reverse logistics and forward logistic system simultaneously. In the design of reverse logistic system, recovery options are embedded in traditional supply chain for treating returned products. The recovery system includes collection centres, remanufacturing plants and disposal centres. Since the product return is supply driven, there is an uncertainty about it. In the proposed configuration for closed loop supply chain, the optimised configuration for supply chain in terms of locating recovery plants is developed. Accordingly, a fuzzy mixed integer linear programming model develops to deal with the uncertainty of returning products by customers. A general-purpose solver (LINGO 8.0) and a Meta heuristic approach (genetics algorithm) are implemented to solve the proposed model. The answers are compared by defining indexes and then the optimal answer, configuration and variables are identified. This solution will suggest a new design of supply chain network in which waste of materials is minimised and the new raw materials are necessary only when the used products may not be recovered by recovery options.