Abstract
Closed-loop supply chains (CLSCs) have received considerable attention because of various economic and regulatory factors. A CLSC is characterized by more complicated network structures and higher uncertainties compared to traditional supply chain networks. Therefore, reliable CLSCs are being increasingly emphasized in academic circles due to the vast impacts of disruptions such as natural disasters and terrorist attacks. This paper studies a reliable location-inventory problem in a CLSC considering the mutual effects between failures of forward and reverse distribution centers (DCs) when they are co-located. The disruption probability of a co-located forward DC is different from that of a standalone forward DC, i.e., probabilistic disruptions are dependent on facility type. The problem is formulated as a nonconvex mixed-integer programming problem. A decomposition approach based on the outer approximation (DOA) algorithm is proposed to address the resulting model. The algorithm alternately solves relaxed master problems (mixed-integer linear programs, MILPs) and two nonlinear programming (NLPs) problems. Extensive numerical experiments are conducted to evaluate the performance of the proposed solution approach, after which managerial insights are explored.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
