Closed-loop supply chain network design under uncertain quality status: Case of durable products

Mohammad Jeihoonian, Masoumeh Kazemi Zanjani and Michel Gendreau

International Journal of Production Economics, 2017, vol. 183, issue PB, 470-486

Abstract: This paper proposes a two-stage stochastic mixed-integer programming model for a closed-loop supply chain network design problem in the context of modular structured products in which the reverse network entails several types of recovery options. It accounts for uncertainty in the quality status of the return stream, modeled as binary scenarios for each component in the reverse bill of material corresponding to such products. To deal with the intractable number of scenarios in the proposed model, a scenario reduction scheme is adapted to the problem of interest to preserve the most pertinent scenarios based on a modified Euclidean distance measure. The reduced stochastic large-scale optimization problem is then solved via a L-shaped algorithm enhanced with surrogate constraints and Pareto-optimal cuts. Numerical results indicate that the scenario reduction algorithm provides good quality solutions to the stochastic problem in a reasonable amount of time through applying the enhanced L-shaped method.

Keywords: Stochastic closed-loop supply chain; Uncertain quality status; Durable products; Scenario reduction; L-shaped (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092552731630175X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:183:y:2017:i:pb:p:470-486

DOI: 10.1016/j.ijpe.2016.07.023

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().