Dual-Channel Global Closed-Loop Supply Chain Network Optimization Based on Random Demand and Recovery Rate

Aijun Liu, Yan Zhang, Senhao Luo and Jie Miao
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Aijun Liu: Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China
Yan Zhang: Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China
Senhao Luo: Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China
Jie Miao: Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, China

IJERPH, 2020, vol. 17, issue 23, 1-32

Abstract: In the process of globalization, customer demand is usually difficult to predict, and product recycling is generally difficult to achieve accurately. It is also urgent to deal with increased inventory while avoiding shortages, with the purpose of reducing supply chain risks. This study analyzes the integrated supply chain decision-making problem in the random product demand and return environment. It proposes a multi-objective optimization model, which is an effective tool to solve the design and planning problems of the global closed-loop supply chain. It consists of a multi-period, single-product and multi-objective mixed integer linear programming model, which can solve some strategic decision problems, including the network structure, entity capacities, flow of products and components, and collection levels, as well as the inventory levels. From the perspective of economic, environmental and social benefits, three objective functions are defined, including maximizing the net present value (NPV) of the system, minimizing the total C O 2 e emissions of supply chain activities, and maximizing social sustainability indicators. Finally, a numerical example is provided to verify the advantages of this model, and sensitivity analysis results are provided. The results show that changes in product demand and return rate will have a great impact on economic and social performance.

Keywords: global closed-loop supply chain; dual-channel sales and dual-channel collection; mixed-integer linear programming; design and planning; ?-constraint method (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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