4.7 Article

Robust closed-loop supply chain network design for perishable goods in agile manufacturing under uncertainty

Journal

INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 50, Issue 16, Pages 4649-4669

Publisher

TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2011.625051

Keywords

closed-loop supply chain network design; interval data uncertainty; robust optimisation; bill of materials; product warehousing lifetime

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In this study, a general comprehensive model is proposed for strategic closed-loop supply chain network design under interval data uncertainty. The proposed model considers various assumptions such as multiple periods, multiple products, and multiple supply chain echelons as well as uncertain demand and purchasing cost. In addition, bill of materials for each product is considered via a new approach in management of forward and reverse flows of products for producing new products and reusing or disassembling returned products. Uncertainty of parameters in the proposed model is handled via an interval robust optimisation technique. The model assumptions are well matched with decision making environments of food and high-tech electronics manufacturing industries. The factors that make these two industries similar are time-dependent properties of products such as prices and warehousing lifetime period. The computational results of solving the proposed model via LINGO 8 demonstrate efficiency of the proposed model in dealing with uncertainty in an agile manufacturing context.

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