Closed-loop Supply Chain Network Design Research Articles

Circular closed-loop supply chain network design considering 3D printing and PET bottle waste

AbstractOne of the most critical pillars of Industry 4.0 (I4.0) is Additive Manufacturing (AM) or 3D Printing technology. This transformative technology has garnered substantial attention due to its capacity to streamline processes, save time, and enhance product quality. Simultaneously, environmental concerns are mounting, with the growing accumulation of plastic bottle waste, offering a potential source of recycled material for 3D printing. To thoroughly harness the potential of AM and address the challenge of plastic bottle waste, a robust supply chain network is essential. Such a network not only facilitates the reintegration of plastic bottle waste and 3D printing byproducts into the value chain but also delivers significant environmental, social, and economic benefits, aligning with the tenets of sustainable development and circular economy. To tackle this complex challenge, a Mixed-Integer Linear Programming (MILP) mathematical model is offered to configure a Closed-Loop Supply Chain (CLSC) network with a strong emphasis on circularity. Environmental considerations are integral, and the primary objective is to minimize the overall cost of the network. Three well-known metaheuristics of Simulated Annealing (SA), Genetic Algorithm (GA), and Particle Swarm Optimization (PSO) are employed to treat the problem which are also efficiently adjusted by the Taguchi design technique. The efficacy of our solution methods is appraised across various problem instances. The findings reveal that the developed model, in conjunction with the fine-tuned metaheuristics, successfully optimizes the configuration of the desired circular CLSC network. In conclusion, this research represents a significant step toward the establishment of a circular supply chain that combines the strengths of 3D printing technology and the repurposing of plastic bottle waste. This innovative approach holds promise for not only reducing waste and enhancing sustainability but also fostering economic and social well-being.

Metaheuristic-driven extended exergy accounting for sustainable closed-loop food supply chain management

In this research, an exergetic mathematical model is proposed for closed-loop food supply chain network design considering economic, environmental, and social aspects. The studded closed-loop food supply chain consists of six echelons, four echelons for forwarding the products (suppliers, factory, distribution centers, and customers), and two echelons for returning the products (collecting centers and disposal centers). The exergetic model is based on the extended exergy accounting method, which calculates the consumed exergy in all six echelons by considering the equivalents of labor and capital exergy. This model aims to minimize both the economic and exergetic costs associated with the food supply chain. To solve the proposed mathematical model, an ensemble global–local search metaheuristic algorithm utilizing a combined whale optimization algorithm (WOA) and simulated annealing (SA), called CWOASA, is proposed. In the CWOASA algorithm, first, WOA is used to search the entire search space. Next, SA is applied to further improve the best solution obtained by WOA. A real dataset of a dairy supply chain is used to evaluate the efficiency of the proposed metaheuristic-driven exergy analysis model and claim its benefits over the existing methods. Simulation results revealed that the proposed method leads to a 6.74% reduction in the total exergy consumption of the supply chain. The proposed methodology offers valuable insights, shedding light on the prospective gains in terms of mitigated environmental impact for each incremental economic expenditure, thus laying the foundation for promising avenues of future research.

Green-resilient model for smartphone closed-loop supply chain network design: A novel four-valued refined neutrosophic optimization

This study endeavors to integrate green supply chain and resilience proactive strategies within a closed-loop supply chain network. The research employs a three-step methodology. In the first phase, a multi-objective, multi-period, multi-node, mixed integer linear programming model (MILP) is developed. The objective of this study is to maximize resilience while minimizing both greenhouse gas (GHG) emissions and costs. The environmental footprint is assessed using the life cycle assessment (LCA) tool as part of the green supply chain strategy. To optimize resilience strategies, proximate nodes in the closed-loop supply chain network implement measures involving node criticality and inventory availability. In the second step, a novel four-valued refined multi-objective neutrosophic optimization algorithm is introduced to resolve the model. In contrast to traditional optimization approaches, neutrosophic optimization integrates elements of truth, falsity, contradictions, and uncertainty into the decision-making process. In the third phase, a case study of the smartphone supply chain is presented, advocating for the adoption of circular economy practices to prevent future waste. To assess the resilience of the model, a sensitivity analysis has been conducted, examining various key parameters associated with the market, and studying their impact on the objective function. The model's performance is validated by comparing the solution methodology with other goal programming and interactive fuzzy multi-objective methods. The results highlight the better performance of four-valued refined neutrosophic optimization, achieving 3.59 and 3.38 times greater cumulative gap reduction than other methods. The optimal solution recommends green strategies for an optimal trade-off among cost, GHG emissions, and resilience.

Multi-objective mixed integer programming modelling for closed-loop supply chain network design: an enhanced Benders decomposition algorithm

Considering a closed-loop supply chain (CLSC) network with uncertain demand and recycling rates, this article innovatively designs a multi-objective mixed-integer programming model that incorporates corporate social responsibility (CSR), a facility retrofit strategy (FRS), a flexible supply strategy (FSS) and a vehicle selection strategy (VSS). Then, robust optimization methods are applied to construct robust models under three situations of uncertainty. For the computational complexity of large-scale problems, an enhanced Benders decomposition algorithm (EBDA) is designed. A numerical case analysis is conducted using five different scale instances. First, compared to other algorithms, EBDA accelerates the solution efficiency while ensuring convergence. Secondly, the sensitivity of the objective weights and the trade-offs of multiple objectives are analysed. Finally, the impact is analysed of the uncertain environment, CSR, an FRS, an FSS and a VSS on the CLSC network. Decision makers need to balance three objectives to manage CLSC and use these strategies appropriately to address the negative impact of an uncertain environment.

Net-zero, resilience, and agile closed-loop supply chain network design considering robustness and renewable energy.

The Net-zero, Resilience, and Agile Closed-Loop Supply Chain Network (NZRACLSCND) concept integrates net-zero, resiliency, and agility in a circular economy. Regarding net-zero, this research embeds renewable energy like solar energy and hybrid trucks to supply energy for facilities and transportation of goods and products between components. Applying redundancy, multi-source, and flexible capacity as resiliency strategies is suggested to cope with the demand disruption. Satisfaction demand level is utilized for the agile approach. This research proposes Robust Stochastic Optimization (RSO), including the weighted expected value and maximum CO2 for NZRACLSCND. This study locates and determines the flow of CLSC in the home appliance industry by considering NZRA, robustness, and risk against demand disruption. CO2 emission using the NZRA concept is 233.33% less than without considering NZRA concepts. In addition, the conservative coefficient, agile coefficient, decreased CO2 coefficient, and the model scale are analyzed. The results show that when the conservative coefficient increases, the risks of CO2 emission increase. In addition, when the agile coefficient increases, as a result, CO2 emission increases. Finally, when the decreased CO2 coefficient and the model scale increase, we can see that CO2 emission and cost are increased.

Multi-objective programming for multi-period multi-product closed-loop supply chain network design: a fuzzy robust optimization approach

Multi-objective programming for multi-period multi-product closed-loop supply chain network design: a fuzzy robust optimization approach

Data-driven robust optimization of dual-channel closed-loop supply chain network design considering uncertain demand and carbon cap-and-trade policy

With the popularization of Internet applications and the development of e-commerce, the number of online consumers is constantly increasing. This study aims to provide a framework for a sustainable and environmentally friendly closed-loop supply chain network with dual-channel (online channel and offline channel). The goal is to assist managers in making economically and environmentally sustainable decisions. Accordingly, a multi-period mathematical model is designed to address the challenges of the appliance industry, which faces uncertain demand. The model considers the carbon cap-and-trade policy, the regional protection policy of the retailer, and multiple transport modes in the design of the supply chain network. To handle demand uncertainty, we propose a robust model that utilizes a data-driven polyhedral uncertainty set based on principal component analysis and kernel smoothing methods and transforms the robust model into a mixed-integer linear programming problem. Additionally, we present a two-stage adaptive genetic algorithm to effectively tackle the large-scale and complex nature of the supply chain network. Extensive computations are performed to verify the algorithm's effectiveness. Finally, sensitivity analysis is conducted on key parameters to gain valuable insights. The results demonstrate that an increase in online consumers can significantly reduce stockouts, while an increase in uncertain demand leads to a substantial increase in the total cost.

Green and reliable medical device supply chain network design under deep dynamic uncertainty: A novel approach in the context of COVID-19 outbreak

Conditions governing industrial activities during and after global shocks with societal and economic transformations such as the COVID-19 pandemic have led to the loss of effectiveness of conventional approaches to dealing with uncertainties. The occurrence of sharp fluctuations in the essential parameters has left decision-makers in an unpredictable situation. Therefore, proactive efforts should be made to develop current approaches for adapting to new conditions. This paper establishes a strategic, tactical, and operational decision-making framework under the COVID-19 outbreak by developing a new uncertainty type called deep dynamic uncertainty. In the first step, a Mixed-Integer Linear Programming (MILP) model is proposed for the green and reliable closed-loop supply chain network design. The proposed model allows the decision-maker (DM) to manage and control co2emissions and e-waste generation. In the second step, a new three-step algorithm called Augmented Adjustable Column-Wise Robust Optimization (AACWRO) is first proposed. Then, by combining the proposed column-wise uncertainty with multi-stage stochastic programming (MSSP) approach, deep dynamic uncertainty is theorized for modeling the demand uncertainty under pandemic conditions. The model's performance under deep dynamic uncertainty has been carefully investigated based on the real ventilator and infusion pump supply chain network in Iran. The model under deep dynamic uncertainty, while maintaining tractability and adjustability, provides flexibility in entering data into the problem and significantly increases the coverage of modeling uncertainties. The results clearly demonstrate the efficiency of the proposed approach. The model under deep dynamic uncertainty at all levels of conservatism has on average 42.96% lower cost and 32% higher stability than the MSSP model.

A Necessity-Based Optimization Approach for Closed-Loop Logistics Considering Carbon Emission Penalties and Rewards under Uncertainty

The recycling of waste products can bring enormous economic and environmental benefits to supply chain participants. Under the government’s reward and punishment system, the manufacturing industry is facing unfolded pressure to minimize carbon emissions. However, various factors related to the design of closed-loop logistics networks are uncertain in nature, including demand, facility capacity, transportation cost per unit of product per kilometer, landfill cost, unit carbon penalty cost, and carbon reward amount. As such, this study proposes a new fuzzy programming model for closed-loop supply chain network design which directly relies on fuzzy methods based on the necessity measure. The objective of the proposed optimization model is to minimize the total cost of the network and the sum of carbon rewards and penalties when selecting facility locations and transportation routes between network nodes. Based on the characteristics of the problem, a genetic algorithm based on variant priority encoding is proposed as a solution. This new solution encoding method can make up for the shortcomings of the four traditional encoding methods (i.e., Prüfer number-based encoding, spanning tree-based encoding, forest data structure-based encoding, and priority-based encoding) to speed up the computational time of the solution algorithm. Several alternative solution approaches were considered to evaluate the proposed algorithm including the precision optimization method (CPLEX) and priority-based encoding genetic algorithm. The results of numerous experiments indicated that even for large-scale numerical examples, the proposed algorithm can create optimal and high-quality solutions within acceptable computational time. The applicability of the model was demonstrated through a sensitivity analysis which was conducted by changing the parameters of the model and providing some important management insights. When external parameters change, the solution of the model maintains a certain level of satisfaction conservatism. At the same time, the changes in the penalty cost and reward amount per unit of carbon emissions have a significant impact on the carbon penalty revenue and total cost. The results of this study are expected to provide scientific support to relevant supply chain enterprises and stakeholders.

Closed-Loop Supply Chain Network Design with Flexible Capacity under Uncertain Environment

This paper incorporates flexible facility capacity and government subsidy factors into the consideration of the design of a closed-loop supply chain(CLSC) network based on an uncertain environment. Considering the minimization of economic cost and carbon emission, a multi-objective multi-period multi-product mixed integer linear programming model with fixed and flexible facility capacity is constructed respectively. The robust optimization method is applied to deal with the uncertain environment of demand, recycled product quality, and recycling rate faced by the CLSC, and the robust models under six uncertain sets are constructed respectively. For model solving, the designed algorithm uses the augmented ϵ-constraint method to handle multi-objective problems and introduces a three-stage method on top of the Benders decomposition algorithm to accelerate the efficiency of solving the main problem. Finally, through numerical cases, a CSLC with a flexible supply strategy can manage economic and environmental costs to cope with the negative impacts of an uncertain environment, while this paper verifies the effectiveness of the government subsidy strategy under different conditions and analyzes the potential limitations.

Considering the circular economy for designing closed-loop supply chain under hybrid uncertainty: A robust scenario-based possibilistic-stochastic programming

Due to the significance of environmental and economic topics and limited resources, integrating Circular Economy (CE) principles is necessary for Supply Chain (SC) to improve sustainable competitive advantage. The integration of CE in SCs leads to a Closed-Loop Supply Chain Network Design (CLSCND) and a circular SC to achieve the economic, environmental, and social aspects of outputs and processes. On the other hand, the integration of CE in CLSCND faces hybrid uncertainties in different time horizons and scenarios due to the strategic and long-term nature of decisions. Due to the impact of random and cognitive uncertainties in the long term, it is necessary to consider these factors in the integration of CE in CLSCND. So, the aim of the present study is CLSCND to achieve the principles of CE and provide a robust scenario-based possibilistic-stochastic programming approach to consider cognitive and random uncertainties simultaneously. The contributions and innovations of the present study are the integration of CE in CLSCND, considering cognitive and random uncertainties at the same time, developing the Me criterion to achieve flexible solutions based on the convex combination of opinions of experts, and proposing the use of the absolute possible deviation to consider the possibilistic deviation. A case study was investigated for CLSCND in the paper industry to assess the presented approach, and the results indicated the accuracy and robustness of the solutions. The numerical simulation results demonstrated the appropriate performance of the proposed method, that the lowest average and standard deviation values of the constraints violation were 601 and 48, respectively, in the developed approach. Analytical findings show that implementing CE in the paper CLSCND provides insights for managers in demand and capacity constraint violations based on different risk levels. Also, this study offers a comprehensive framework for presenting robustness and flexible solutions in CLSC problems based on changes in robustness coefficients and sensitivity analysis of parameters of the CLSCND, which can create a trade-off between CE objectives in uncertain parameters.

A design of a circular closed-loop agri-food supply chain network—A case study of the soybean industry

In recent years, there has been an irresistible need for the agri-food industry to prioritize the development of efficient supply chain systems considering circular economy concepts. Agri-food products are critical to sustaining human life, as they provide essential nutrients required for maintaining bodily functions. Producing the appropriate quantity of agri-food products to match the potential demand is crucial for efficient supply to industries and markets. In addition, the principles of the circular economy can be employed to effectively utilize or reintroduce agri-food waste back into the network. This work formulates a novel mixed-integer linear programming model to propose a closed-loop agri-food supply chain network design for the soybean industry under sustainability and circular economy terms. The multi-objective network struggles to manage the total net profit while monitoring CO2 emissions and the satisfaction of customers within the network. Given the NP-hard nature of the network, the solution approach embraces a set of conventional and hybrid metaheuristics to surmount its complexity effectively. To this end, four multi-objective optimizers and three hybrid algorithms are utilized. Hence, the model's compatibility with real conditions is investigated using fifteen practical tests. The results of interval plots and the hybrid multi-criteria decision-making techniques emphasize that optimizers can solve all sizes of problems. However, MOGWO is better suited for addressing small-size problems, whereas MOHHSA is highly effective for tackling problems of medium and large sizes.

A case-oriented computational study for sustainable fleet planning in a battery closed-loop supply chain network under uncertainty

PurposeThe purpose of this study is to develop a holistic optimization model for an integrated sustainable fleet planning and closed-loop supply chain (CLSC) network design problem under uncertainty.Design/methodology/approachA novel mixed-integer programming model that is able to consider interactions between vehicle fleet planning and CLSC network design problems is first developed. Uncertainties of the product demand and return fractions of the end-of-life products are handled by a chance-constrained stochastic program. Several Pareto optimal solutions are generated for the conflicting sustainability objectives via compromise and fuzzy goal programming (FGP) approaches.FindingsThe proposed model is tested on a real-life lead/acid battery recovery system. By using the proposed model, sustainable fleet plans that provide a smaller fleet size, fewer empty vehicle repositions, minimal CO2 emissions, maximal vehicle safety ratings and minimal injury/illness incidence rate of transport accidents are generated. Furthermore, an environmentally and socially conscious CLSC network with maximal job creation in the less developed regions, minimal lost days resulting from the work's damages during manufacturing/recycling operations and maximal collection/recovery of end-of-life products is also designed.Originality/valueUnlike the classical network design models, vehicle fleet planning decisions such as fleet sizing/composition, fleet assignment, vehicle inventory control, empty repositioning, etc. are also considered while designing a sustainable CLSC network. In addition to sustainability indicators in the network design, sustainability factors in fleet management are also handled. To the best of the authors' knowledge, there is no similar paper in the literature that proposes such a holistic optimization model for integrated sustainable fleet planning and CLSC network design.

Risk-averse two-stage stochastic programming-based closed-loop supply chain network design under uncertain demand

In recent years, there has been a growing awareness and acceptance of the concept of green environmental protection among the public, primarily due to the worsening environmental issues and increased emphasis by governments on corporate social responsibility regulations. As a result, the management of closed-loop supply chains has gained significant attention from both businesses and researchers. Most stochastic programming models addressing closed-loop supply chain (CLSC) under uncertainty are typically designed to be risk-neutral. In this paper, a risk-averse two-stage stochastic programming (RATSSP) model for the closed-loop supply chain network design (CLSCND) problem considering facility capacity level decisions under uncertain demand. It is aiming to trade off the expected total profit and the profit risk, based on a given degree of responsive risk aversion. Due to the NP-hard nature of the CLSCND problem, this paper applies simplified swarm optimization (SSO), genetic algorithm (GA), and particle swarm optimization (PSO) algorithms to solve the problem. To improve the efficiency and quality of the obtained solutions, we propose a parallel computation meta-heuristic algorithm, parallel simplified swarm optimization (PSSO), along with parallel versions of PSO and GA. Computational results show the effectiveness of our proposed model, with PSSO demonstrating the best robustness and solution quality among the considered algorithms.

Bi-objective stochastic closed-loop supply chain network design under uncertain quantity and quality of returns

In this paper, we seek to optimize closed loop supply chain (CLSC) network design by determining the location of distribution and collection facilities and the assignment of forward and reverse flows that maximize the system profit and minimize CO2 emissions. To account for the difficulty of predicting and controlling recoverable items in practice, we incorporate into the proposed bi-objective model three types of uncertainties: return quantity, return quality and remanufacturing costs. We use the ε-constraint method to solve the resulting bi-objective scenario-based two-stage stochastic program and generate a set of Pareto-optimal solutions. Our numerical experiments show that both network configuration and performance levels are sensitive to variations of the quality and quantity of returns, in particular when the penalty for not processing returns is high. They also reveal the importance of stochastic modelling since the value of the stochastic solution can be significant in many cases. However, by increasing the size of the problem, the runtime of the ε-constrained stochastic model can be dramatically increased and memory shortage issues may occur. Therefore, we investigate the computational performance of a metaheuristic method based on a non-dominated sorting genetic algorithm (NSGAII) and a linear programming (LP) relaxation. Our method is capable of approximating the Pareto frontier on instances where the ε-constraint method cannot provide any feasible solution within the same time limit.

A resilient closed-loop supply chain network design through integrated sourcing and pricing strategies

A resilient closed-loop supply chain network design through integrated sourcing and pricing strategies

A multi-objective optimization for a closed-loop sustainable pharmaceutical supply chain network design: a case study

PurposeThis paper deals with the combined management and design of a sustainable pharmaceutical supply chain network with considering recycling.Design/methodology/approachThis paper first utilizes the analytical hierarchy process to select and rank green manufacturers. Second, the authors proposed a multi-objective nonlinear mathematical model to design a sustainable pharmaceutical supply chain network. The proposed model has been linearized and solved using the LP-metric method using GAMS software.FindingsA real case study has been conducted in Iran. The results show that environmental and social issues can be improved while minimizing total costs.Originality/valueGiven the criticality and importance of drugs in human health and the importance of recycling in today's world, proper management and design of a sustainable drug supply chain are necessary. This study pays special attention to environmental issues by utilizing multi-criteria decision approaches and customer satisfaction.

Incorporating Vehicle-Routing Problems into a Closed-Loop Supply Chain Network Using a Mixed-Integer Linear-Programming Model

In recent years, there has been a tremendous increase in environmental awareness, due to concerns about sustainability. Designing an efficient supply chain network that fulfills the expectation of both business owners and customers and, at the same time, pays attention to environmental protection is becoming a trend in the commercial world. This study proposes a theoretical model incorporating vehicle routing problems (VRPs) into the typical CLSC (closed-loop supply chain) network architecture. This combination assists all operators to act more efficiently in terms of environmental protection and profitability. A mixed-integer-linear-programming model for CLSC network design with fuzzy and random uncertain data is developed to achieve the goals. The parameters of the CLSC network are also programmed using hybrid fuzzy-stochastic mathematical programming. The model is for a single product and a single timeframe. Several numerical examples are provided to demonstrate the validity of the proposed mixed-integer-linear-programming (MILP) model. This study also investigated probabilistic possibilities for recourse variables with a trapezoidal fuzzy number using a problem size of four cases. The result indicates that the model performed well in the numerical test, suggesting it can help the operation to be more profitable if this model is implemented in their daily routines.

Resilient closed-loop supply chain network design considering quality uncertainty: A case study of stone quarries

According to the important role of the mining industry in the economic growth of developing countries, this industry is taken into consideration significantly. However, few studies have been conducted on developing mining supply chains that take into account the unique conditions of this industry, such as disruptions and product quality. This paper proposes a multi-period, multi-product mixed-integer quadratic programming problem to optimize a closed-loop stone supply chain network design. Compared to previous studies, we consider resilience in the mining supply chain for the first time. Furthermore, the quality characteristics of extracted and final stones are considered in a developed reliable model, and two-stage stochastic programming is applied to handle the quality uncertainty in the mining supply chain. Additionally, a price-dependent demand is considered in this research to investigate the competition between local and imported stone prices. A real-world case study on Iranian stone mining is analyzed to demonstrate the efficiency and applicability of the proposed model. Finally, some managerial insights are presented as guidance to managers of the mentioned supply chain to help them make better decisions. The results show that the transportation costs impact profit more than the operational costs. Moreover, West Azerbaijan and Isfahan have great potential for being the poles of stone in Iran. West Azerbaijan is also appropriate for exporting stones to neighboring countries, geographically.

Risk-averse joint facility location-inventory optimisation for green closed-loop supply chain network design under demand uncertainty

Risk-averse joint facility location-inventory optimisation for green closed-loop supply chain network design under demand uncertainty