Integrated recycling-integrated production - distribution planning for decentralized closed-loop supply chain

Abstract

Integrated integrated production - distribution planning in traditional forward supply chain has attracted a lot of attention in recent years and its economic advantages are particularly noticeable. However, for closed-loop supply chain, recycling and remanufacturing processes should be taken further into account to the integrated planning. In this paper, we address a planning problem of a multi - echelon decentralized closed-loop supply chain system, which consists of a joint recycling center, multiple manufacturing/remanufacturing factories and multiple distributors decentralized to different regions. For this problem, an integrated recycling-integrated production - distribution multi - level planning model is developed, which considers material flows and decision interactions among members at different echelons in the system, as well as their own operation objectives. And the local interests of members at every echelon would be balanced in order to coordinate the operation of the whole system. According to the characteristics of the planning model, the solution approach is designed by hierarchical iteration strategy based on Self-Adaptive Genetic Algorithm (SAGA). Hierarchical iteration processes, in which SAGA is used to solve every single level model, are corresponding to repeated negotiation behaviors among members at different echelons in closed-loop supply chain. Finally, a numerical example is suggested to demonstrate the applicability and effectiveness of the proposed model and solution approach.