To design sustainable supply chain systems in today's business environment, this paper studies a location-inventory problem in a closed-loop supply chain by considering the sales of new and used products in the primary and secondary markets, respectively. This problem is formulated as a mixed-integer nonlinear program to optimize facility location and inventory management decisions jointly, and the logistics flows between the two markets are modeled dynamically. To solve this problem efficiently, a new heuristic approach is also developed by introducing an effective adaptive mechanism into differential evolution. Finally, numerical experiments are presented to validate the solution approach and provide valuable managerial insight. This paper makes a meaningful contribution to the literature by incorporating the secondary market into the study of closed-loop supply chains, and practically, it is also greatly beneficial to improve the sustainability and efficiency of modern supply chains.
Facility location, inventory management, and vehicle routing are three important decisions in supply chain management, and location-inventory-routing problems consider them jointly to improve the performance and efficiency of today’s supply chain networks. In this paper, we study a location-inventory-routing problem to minimize the total cost in a closed-loop supply chain that has forward and reverse logistics flows. First, we formulate this problem as a nonlinear integer programming model to optimize facility location, inventory control, and vehicle routing decisions simultaneously in such a system. Second, we develop a novel heuristic approach that incorporates simulated annealing into adaptive genetic algorithm to solve the model efficiently. Last, numerical analysis is presented to validate our solution approach, and it also provides meaningful managerial insight into how to improve the closed-loop supply chain under study.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.