Model and algorithm for augmenting logistics network resilience with hybrid facilities and robust strategies

Abstract

This paper introduces a mixed-integer nonlinear programming (MINLP) model aimed at designing a dependable closed-loop supply chain that can function effectively despite disruptions. The model incorporates several strategies to reduce the risks associated with random facility disruptions. First, the concept of p-robustness criterion is employed, which sets upper bounds on the cost in various disruption scenarios to protect against disruptions. To accommodate for the varying levels of reliability of facilities, the network consists of two categories of infrastructure: reliable and defective hybrid infrastructure. Thirdly, a sharing strategy is proposed to mitigate for the capacity loss at unreliable facilities by permitting transportation of products from reliable facilities to unreliable facilities. Additionally, an improved genetic algorithm (IGA) is devised for the MINLP model efficiently. The efficacy of the model and the tailored algorithm is evaluated by means of computational experiments. Finally, a sensitivity analysis is ultimately performed to furnish managers with meaningful insights. For example, the sharing strategies demonstrate a significant decrease of total cost. This paper contributes to enhancing resilience in logistics networks, ensuring their reliable performance even in the face of disruptions.