Mitigating closed-loop supply chain risk through assessment of production cost, disruption cost, and reliability

Runliang Dou, Xin Liu, Yanchao Hou and Yixin Wei

International Journal of Production Economics, 2024, vol. 270, issue C

Abstract: Modern supply chains are affected by high disruption risks owing to their production complexity and globalization characteristics. In addressing supply chain disruption risks, we observed mutual conflict among reliability, disruption costs, and production costs. Therefore, the relationship among production costs, disruption costs, and reliability must be balanced to accommodate supply chain disruptions more effectively. This study establishes a four-tier closed-loop supply chain multi-objective optimization model based on a propagation structure. This study is the first to unify these three objectives for supply chain optimization. Additionally, the artificial bee colony (ABC) algorithm and gradient descent method are combined for the solution. To demonstrate the effectiveness of this method, the classical ABC algorithm is compared with a simulated annealing algorithm through a case study in the semiconductor industry. Our research findings indicate that considering the industrial applicability of the semiconductor industry, increasing supply chain reliability and disruption cost weights, and assigning overall supply chain orders from a holistic perspective can effectively address supply chain disruption risk.

Keywords: Supply chain; Disruption; Artificial bee colony algorithm; Closed-loop; Semiconductor industry (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527324000318
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:270:y:2024:i:c:s0925527324000318

DOI: 10.1016/j.ijpe.2024.109174

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 ().