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Operations Research, Systems Engineering and Industrial Engineering Commons

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Series

Iowa State University

Closed-loop supply chain

2016

Articles 1 - 1 of 1

Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering

Hybrid Robust And Stochastic Optimization For Closed-Loop Supply Chain Network Design Using Accelerated Benders Decomposition, Esmaeil Keyvanshokooh, Sarah M. Ryan, Elnaz Kabir Feb 2016

Hybrid Robust And Stochastic Optimization For Closed-Loop Supply Chain Network Design Using Accelerated Benders Decomposition, Esmaeil Keyvanshokooh, Sarah M. Ryan, Elnaz Kabir

Industrial and Manufacturing Systems Engineering Publications

Environmental, social and economic concerns motivate the operation of closed-loop supply chain networks (CLSCN) in many industries. We propose a novel profit maximization model for CLSCN design as a mixed-integer linear program in which there is flexibility in covering the proportions of demand satisfied and returns collected based on the firm's policies. Our major contribution is to develop a novel hybrid robust-stochastic programming (HRSP) approach to simultaneously model two different types of uncertainties by including stochastic scenarios for transportation costs and polyhedral uncertainty sets for demands and returns. Transportation cost scenarios are generated using a Latin Hypercube Sampling method ...