A mixed integer linear programming model for designing a green closed-loop supply chain network considering location-routing problem Online publication date: Tue, 26-May-2020
by Alvand Sadeghi; Hassan Mina; Niloofar Bahrami
International Journal of Logistics Systems and Management (IJLSM), Vol. 36, No. 2, 2020
Abstract: In today's business environment, reusing the products could result in a great deal of supply chains cost reductions. Additionally, environmental regulations and customers' increasing expectations leave companies no choice but applying the return policy. In this regard, designing a supply chain network incorporating the reverse flow can provide environmental requirements in addition to economic objectives. In this paper, a new mixed integer linear programming (MILP) model is developed for a closed-loop supply chain network (CLSCN) design. The proposed model is multi-period and multi-product that covers facility location and routing of heterogeneous vehicle fleets, simultaneously. The efficiency of the model is validated based on a real case in production and distribution chain of automotive spare parts manufacturing company in Iran. Managerial insights are gained through the numerical results.
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