Scenario-based designing of closed-loop supply chain with uncertainty in returned products

Closed-loop supply chain management is an effective and efficient solution for a set of activities to retrieve a product from a customer and improve its value or to dispose it. Today, designing and planning a closed-loop chain is an inevitable but difficult task. In this research, a scenario-based m...

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Main Authors: Iman Ghasemian Sahebi, Behzad Masoom, Shahryar Ghorbani, Tanyeri Uslu
Format: Article
Language:English
Published: Growing Science 2019-07-01
Series:Decision Science Letters
Subjects:
Online Access:http://www.growingscience.com/dsl/Vol8/dsl_2019_8.pdf
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author Iman Ghasemian Sahebi
Behzad Masoom
Shahryar Ghorbani
Tanyeri Uslu
author_facet Iman Ghasemian Sahebi
Behzad Masoom
Shahryar Ghorbani
Tanyeri Uslu
author_sort Iman Ghasemian Sahebi
collection DOAJ
description Closed-loop supply chain management is an effective and efficient solution for a set of activities to retrieve a product from a customer and improve its value or to dispose it. Today, designing and planning a closed-loop chain is an inevitable but difficult task. In this research, a scenario-based modeling approach is presented by considering both forward and reverse flows as a closed-loop supply chains in steel industry. The proposed study also develops a multi-product and multi-period model based on a mixed integer linear programming (MILP) approach for profit maximization. The study also considers uncertainty in the amount of raw material, processing, storage and distribution of several products flow. Uncertainty is associated with the quantity and quality of the products in the reverse flow, which are directly affected by customers and sorting centers, respectively. Finally, the model is deployed in Steel industry with real data. The results show that by increasing the quality level of returned products the need for raw materials is reduced and the total profit of the supply chain is increased.
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spelling doaj.art-dc7d1c28294948f190b49364d1cb16cb2022-12-22T01:44:03ZengGrowing ScienceDecision Science Letters1929-58041929-58122019-07-018450551810.5267/j.dsl.2019.4.003Scenario-based designing of closed-loop supply chain with uncertainty in returned productsIman Ghasemian SahebiBehzad MasoomShahryar Ghorbani Tanyeri Uslu Closed-loop supply chain management is an effective and efficient solution for a set of activities to retrieve a product from a customer and improve its value or to dispose it. Today, designing and planning a closed-loop chain is an inevitable but difficult task. In this research, a scenario-based modeling approach is presented by considering both forward and reverse flows as a closed-loop supply chains in steel industry. The proposed study also develops a multi-product and multi-period model based on a mixed integer linear programming (MILP) approach for profit maximization. The study also considers uncertainty in the amount of raw material, processing, storage and distribution of several products flow. Uncertainty is associated with the quantity and quality of the products in the reverse flow, which are directly affected by customers and sorting centers, respectively. Finally, the model is deployed in Steel industry with real data. The results show that by increasing the quality level of returned products the need for raw materials is reduced and the total profit of the supply chain is increased.http://www.growingscience.com/dsl/Vol8/dsl_2019_8.pdfClosed-Loop Supply ChainReverse LogisticsScenario PlanningSteel Industry
spellingShingle Iman Ghasemian Sahebi
Behzad Masoom
Shahryar Ghorbani
Tanyeri Uslu
Scenario-based designing of closed-loop supply chain with uncertainty in returned products
Decision Science Letters
Closed-Loop Supply Chain
Reverse Logistics
Scenario Planning
Steel Industry
title Scenario-based designing of closed-loop supply chain with uncertainty in returned products
title_full Scenario-based designing of closed-loop supply chain with uncertainty in returned products
title_fullStr Scenario-based designing of closed-loop supply chain with uncertainty in returned products
title_full_unstemmed Scenario-based designing of closed-loop supply chain with uncertainty in returned products
title_short Scenario-based designing of closed-loop supply chain with uncertainty in returned products
title_sort scenario based designing of closed loop supply chain with uncertainty in returned products
topic Closed-Loop Supply Chain
Reverse Logistics
Scenario Planning
Steel Industry
url http://www.growingscience.com/dsl/Vol8/dsl_2019_8.pdf
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AT shahryarghorbani scenariobaseddesigningofclosedloopsupplychainwithuncertaintyinreturnedproducts
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