Facility location for a closed-loop distribution network: a hybrid approach

Abstract

Purpose The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels of product returns from online retailing coupled with growing pressure to reduce carbon emissions. Design/methodology/approach A case study approach attempts to optimize the distribution centre (DC) location decision for single and double hub scenarios. A hybrid approach combining centre of gravity and mixed integer programming is established for the un-capacitated multiple allocation facility location problem. Empirical data from a major national UK retail distributor network is used to validate the model. Findings The paper develops a contemporary model that can take into account multiple factors (e.g. operational and transportation costs and supply chain (SC) risks) while improving performance on environmental sustainability. Practical implications Based on varying product return rates, SC managers can decide whether to choose a single or a double hub solution to meet their needs. The study recommends a two hub facility location approach to mitigate emergent SC risks and disruptions. Originality/value A two-stage hybrid approach outlines a unique technique to generate candidate locations under twenty-first century conditions for new DCs.

Reverse Logistics Applied to E-Commerce: A Systematic Literature Review on Methods, Applications, and Trends for a Virtual Sustainable Market / Logística Reversa Aplicada Ao Comércio Eletrônico: Uma Revisão Sistemática Da Literatura Sobre Métodos, Aplicações E Tendências Para Um Mercado Virtual Sustentável

“…Then, for the 232 different references, it was possible to identify 206 authors, the most cited were presented in the graph illustrated in figure 8. For these authors, the presence of their works in the publications of this content analysis was validated, so that the publications with the highest recurrence of the same authors were in the publications of Ghadge et al (2016) and Lamba et al (2019), as shown in Table 5. In that order, for the 236 references used in the 7 selected publications, 324 citations were identified.…”

“…Meanwhile, Ghadge et al (2016) adapted known techniques (COG/MILP) to contemplate the reverse flow and optimized the result minimizing transportation costs, handle operations, and consequently atmospheric emissions in the allocation of facilities. However, the model did not consider remanufacturing and disposal operations for returned products, so additional studies would be necessary for real applications including such activities.…”

“…that long-term, free, free return policies do not ensure profitability in orders, but only represent a competitive advantage in attracting new customers.Meanwhile,Ghadge et al (2016) developed a hybrid approach to enable the operation of a multi-site reverse logistics network, in the context of a UK online retail, to minimize both operational and transportation costs. Besides, another objective of the research was the reduction of atmospheric emissions.…”

A Logistics Model Suggestion for A Logistics Centre to Be Established: An Application in Aegean and Central Anatolia Region

“…Zhang et al [7] made a research for the selection of locations for the facilities which may have the minimum cost and maximum demand/coverage areas and which may become unserviceable due to natural disasters or other events. Ghadge et al [8] attempted to optimize, via the case study, the decision of single and double center distribution center location. Elevli [9] applied F-PROMETHEE for selecting one of the five logistics center locations in Samsun-Turkey while taking into account the position, property price, geographical characteristics, ownership, and property conditions as criteria.…”

Ensuring sustainability in the reverse supply chain in case of the ripple effect: A two-stage stochastic optimization model

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