ROBUST PRODUCTION OPTIMIZATION WITH CLOSED LOOP SUPPLY CHAIN SUPPORT

Abstract

We present a robust optimisation model of a production process supported by the products recovery processes. We introduce a Closed Loop Supply Chain (CLSC) model that supports a production planning (PP). The CLSC model is based on a CLSC framework that consists of some logistic centers. According to our knowledge, one can hardly find PP models supported by CLSC. One of the most important problems with those models is the computational complexity involved in preparing production plans for a long planning horizon. This increases a number of additional numerical variables of the CLSC problems. These models are usually integer programming models solved with branch and bound algorithms, in which the search space grows exponentially. Another problem of the CLSC process is uncertain parameters within this process. In addition, the robust models are considered in the paper based upon robust optimisation theory.