Abstract
This paper studies a location-inventory problem in a closed-loop supply chain by considering the demand and sales in the primary and secondary markets. Based on a real business program in a big e-commerce company, we develop a mixed-integer nonlinear programming model with a single hybrid production-recovery center, multiple hybrid distribution-collection centers, and many customer zones. As a closed-loop system, forward and reverse logistics flows in each market are considered, and the logistics flows between the two markets are also captured. Moreover, a novel heuristic approach based on differential evolution is designed to solve the model efficiently, and its performance is also compared with other popular methods. Finally, research implications and managerial insights are provided to advance real-world practices.
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