A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration

Abstract

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.

Smart Health and Safety Equipment Monitoring System for Distributed Workplaces

“…This work fills the gap in the existing literature on CLSC by incorporating the secondary market into the study of CLSC. This work is also beneficial in improving the sustainability and efficiency of modern supply chains [18].…”

“…Guo et al [18] aimed to design sustainable supply chain systems in the current business environment. They proposed a CLSC to solve a location-inventory problem (LIP) by considering the used products in the secondary market and the sales of new ones in the primary market.…”

Minimization of Logistics Cost and Carbon Emissions Based on Quantum Particle Swarm Optimization

“…During the transport, the carbon emissions varied significantly with the congestion degree, road flatness, land slope, and fuel consumption. Therefore, the carbon emissions correlation coefficient which Hao employed for further analysis [24]. Table 7 show the distribution center-retailer distance, and the transport distance per unit of product.…”

An Improved Differential Evolution Algorithm for a Multicommodity Location‐Inventory Problem with False Failure Returns

“…For example, Diabat et al [19] study a closedloop location-inventory problem by considering spare parts, Asl-Najafi et al [20] study a dynamic closed-loop locationinventory problem under disruption risk, and Kaya et al [21] and Guo et al [22] extend such studies by incorporating pricing and vehicle routing decisions in CLSCs, respectively. Since returned products are usually sold to secondary markets in practice, LIPs are also studied by considering CLSCs and secondary markets [23,24].…”

“…When DE is applied to solve optimization problems, an encoding-decoding scheme will be needed to convert individuals in DE to the solutions to the optimization model, and vice versa. In IDE, an individual is represented by the matrix shown in (23).…”