Robust Operation Strategy Design for a Closed-loop Supply Chain with Uncertain Demands

Abstract

Under the synthetically consideration of re-distribution, remanufacturing and reuse, the dynamic operation models for a closed-loop supply chain is established. The supply chain is composed of one manufacturer and one supplier, in which the manufacturer is in charge of recollecting and re-disposal the used products. The operations of closed-loop supply chain are dynamic and meet multi-objectives such as coordination between members, maximum profits of each member. Uncertain demands are described as a scenario set with certain probability, the supply chain operation model is constructed by using the robust linear programming method based on scenario analysis. The result of a numerical example verified the robustness of the operation strategy.