A stochastic closed-loop supply chain network design problem with multiple recovery options

Rim Jerbia, Mouna Kchaou Boujelben, Mohamed Amine Sehli, Zied Jemai

Research output: Contribution to journalArticlepeer-review

42 Citations (Scopus)

Abstract

In this paper, a closed-loop supply chain network design problem with multiple recovery options is studied. First, the deterministic problem is formulated as a Mixed Integer Linear Program (MILP). A sensitivity analysis is carried out in order to investigate the impact of variations of the main input parameters such as customer return rates, revenues, costs as well as the proportions of returns assigned to each recovery option, on the network structure and the company profit. Then, a stochastic version of the model is developed to account for the high uncertainties faced by companies. A scenario-based approach is used to model the uncertainties of return rates, revenues, costs and the quality of returns. The computational results show that the solution of the stochastic problem is stable over different replications and that the benefit from using stochastic modeling increases when the penalty over non collected returns increases.

Original languageEnglish
Pages (from-to)23-32
Number of pages10
JournalComputers and Industrial Engineering
Volume118
DOIs
Publication statusPublished - Apr 2018

Keywords

  • Closed loop supply chain network design
  • Facility location
  • MILP
  • Reverse logistics
  • Two-stage stochastic program

ASJC Scopus subject areas

  • General Computer Science
  • General Engineering

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