A robust leader-follower approach for closed loop supply chain network design considering returns quality levels

Atefeh Hassanpour, Jafar Bagherinejad, Mahdi Bashiri

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1 Citation (Scopus)

Abstract

This paper aims to assess the effect of governmental policies on a closed loop supply chain network design to achieve the optimum decision level of the collection policies for the government. For this purpose, a robust closed loop supply chain network design model with an incentive strategy for different return quality levels with a bi-level programming approach is proposed. The government will act as a leader in the outer problem and maximize the total collected returned products with different quality levels. A predefined ratio of customer demand should be satisfied as a constraint for the outer problem. In the inner problem, a closed loop supply chain designer is considered as a follower and tries to maximize the supply chain net profit with respect to government regulations. A heuristic method based on enumeration and a solution methodology consisting of particle swarm optimization for the outer problem and a genetic algorithm for the inner problem are proposed. In addition, we investigate the impact of demand uncertainty on government regulations and the closed loop supply chain configuration by a robust optimization approach. Finally, numerical examples are generated to evaluate the performance of the proposed model. The results show the necessity of using bi-level programming and the superiority of the proposed solution methodology compared with the proposed enumeration method in large-size problems.
Original languageEnglish
Pages (from-to)293-304
Number of pages12
JournalComputers & Industrial Engineering
Volume136
Early online date15 Jul 2019
DOIs
Publication statusPublished - Oct 2019

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Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Computers & Industrial Engineering. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Computers & Industrial Engineering, Vol. 136, (2019) DOI: 10.1016/j.cie.2019.07.031

© 2019, Elsevier. Licensed under the Creative Commons AttributionNonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • Closed-loop supply chain design
  • Bi-level programming
  • Government regulation
  • Robust optimization
  • Particle swarm optimization
  • Genetic algorithm

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