Robust Facility Location Selection Under Facility Failure in Close-Loop Supply Chain

Jianzhi Leng (), Lun Ran () and Zihao Jiao ()
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Jianzhi Leng: Beijing Institute of Technology
Lun Ran: Beijing Institute of Technology
Zihao Jiao: Beijing Technology and Business University

Chapter Chapter 23 in City, Society, and Digital Transformation, 2022, pp 303-316 from Springer

Abstract: Abstract Public health emergencies, along with worldwide disasters, have been weakening the supply chain’s upstream and downstream connections, further threatening the effective operation of facilities. In the closed-loop supply chain of the new energy industry, the failure of intermediate facilities will not only triggers a jump in holding costs, but also affect the supply of raw materials for the following productions. To this end, we develop a two-stage distributed robust optimization model to optimize the location of intermediate facilities in the closed-loop supply chain, and provides an optimal solution for the decision-making of raw material recycling and remanufacturing and the investment ratio of recycling process. We also conduct a case study in Shandong Province, China, and collects relevant data about local impacts of Covid-19 to conduct facility failure simulations. Numerical results show that the model has a more sensitive response to the combination setting of different parameters, and gives the best decision-making scheme considering the worst risk level.

Keywords: Facility failure; Close-loop supply chain; Robust optimization; Public emergencies (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-15644-1_23

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DOI: 10.1007/978-3-031-15644-1_23

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