A joint pricing and network design model for a closed-loop supply chain under disruption (glass industry)

Closed-loop supply chains have attracted more attention by researchers and practitioners due to strong government regulations, environmental issues, social responsibilities and natural resource constraints over past few years. This paper presents a mixed-integer linear programming model to design a closed-loop supply chain network and optimizing pricing policies under random disruption. Reusing the returned products is applied as a resilience strategy to cope with the waste of energy and improving supply efficiency. Moreover, it is necessary to find the optimal prices for both final and returned products. Therefore, the model is formulated based on demand function and it maximizes total supply chain's profit. Finally, its application is explored through using the real data of an industrial company in glass industry.

Automated summary

Closed-loop supply chains have gained more attention in recent years due to government regulations, environmental issues, social responsibilities, and natural resource constraints. This paper presents a mixed-integer linear programming model to design a closed-loop supply chain network and optimize pricing policies under random disruption. Reusing returned products is proposed as a resilience strategy to address energy waste and improve supply efficiency.