Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making

The importance of considering forward and backward flows simultaneously in supply chain networks spurs an interest to develop closed-loop supply chain networks (CLSCN). Due to the expanded scope in the supply chain, designing CLSCN often faces significant uncertainties. This paper proposes a fuzzy m...

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Main Authors: Zhengyang Hu, Viren Parwani, Guiping Hu
Format: Article
Language:English
Published: MDPI AG 2021-03-01
Series:Logistics
Subjects:
Online Access:https://www.mdpi.com/2305-6290/5/1/15
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author Zhengyang Hu
Viren Parwani
Guiping Hu
author_facet Zhengyang Hu
Viren Parwani
Guiping Hu
author_sort Zhengyang Hu
collection DOAJ
description The importance of considering forward and backward flows simultaneously in supply chain networks spurs an interest to develop closed-loop supply chain networks (CLSCN). Due to the expanded scope in the supply chain, designing CLSCN often faces significant uncertainties. This paper proposes a fuzzy multi-objective mixed-integer linear programming model to deal with uncertain parameters in CLSCN. The two objective functions are minimization of overall system costs and minimization of negative environmental impact. Negative environmental impacts are measured and quantified through CO<sub>2</sub> equivalent emission. Uncertainties include demand, return, scrap rate, manufacturing cost and negative environmental factors. The original formulation with uncertain parameters is firstly converted into a crisp model and then an aggregation function is applied to combine the objective functions. Numerical experiments have been carried out to demonstrate the effectiveness of the proposed model formulation and solution approach. Sensitivity analyses on degree of feasibility, the weighing of objective functions and coefficient of compensation have been conducted. This model can be applied to a variety of real-world situations, such as in the manufacturing production processes.
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spelling doaj.art-784bd83feb494e02ad1039b1c143ef492023-11-21T09:56:08ZengMDPI AGLogistics2305-62902021-03-01511510.3390/logistics5010015Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision MakingZhengyang Hu0Viren Parwani1Guiping Hu2Industrial and Manufacturing Systems Engineering (IMSE), Iowa State University, Ames, IA 50011, USAIndustrial and Manufacturing Systems Engineering (IMSE), Iowa State University, Ames, IA 50011, USAIndustrial and Manufacturing Systems Engineering (IMSE), Iowa State University, Ames, IA 50011, USAThe importance of considering forward and backward flows simultaneously in supply chain networks spurs an interest to develop closed-loop supply chain networks (CLSCN). Due to the expanded scope in the supply chain, designing CLSCN often faces significant uncertainties. This paper proposes a fuzzy multi-objective mixed-integer linear programming model to deal with uncertain parameters in CLSCN. The two objective functions are minimization of overall system costs and minimization of negative environmental impact. Negative environmental impacts are measured and quantified through CO<sub>2</sub> equivalent emission. Uncertainties include demand, return, scrap rate, manufacturing cost and negative environmental factors. The original formulation with uncertain parameters is firstly converted into a crisp model and then an aggregation function is applied to combine the objective functions. Numerical experiments have been carried out to demonstrate the effectiveness of the proposed model formulation and solution approach. Sensitivity analyses on degree of feasibility, the weighing of objective functions and coefficient of compensation have been conducted. This model can be applied to a variety of real-world situations, such as in the manufacturing production processes.https://www.mdpi.com/2305-6290/5/1/15closed-loop supply chain network designfuzzy multi-objective decision makingmixed integer linear programming
spellingShingle Zhengyang Hu
Viren Parwani
Guiping Hu
Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
Logistics
closed-loop supply chain network design
fuzzy multi-objective decision making
mixed integer linear programming
title Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
title_full Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
title_fullStr Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
title_full_unstemmed Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
title_short Closed-Loop Supply Chain Network Design under Uncertainties Using Fuzzy Decision Making
title_sort closed loop supply chain network design under uncertainties using fuzzy decision making
topic closed-loop supply chain network design
fuzzy multi-objective decision making
mixed integer linear programming
url https://www.mdpi.com/2305-6290/5/1/15
work_keys_str_mv AT zhengyanghu closedloopsupplychainnetworkdesignunderuncertaintiesusingfuzzydecisionmaking
AT virenparwani closedloopsupplychainnetworkdesignunderuncertaintiesusingfuzzydecisionmaking
AT guipinghu closedloopsupplychainnetworkdesignunderuncertaintiesusingfuzzydecisionmaking