Modeling and solving a sustainable closed loop supply chain problem with pricing decisions and discounts on returned products

Natural gas is an essential fuel in the transitions towards a sustainable energy future as it is considered a cleaner source of fuel when compared to other hydrocarbon sources. To enable natural gas delivery from the producer to consumers, natural gas is liquified to enhance transportation efficiency and reliability. The main contribution of this paper is to develop sustainable LNG supply chain through a review of different sustainable supply chain management tools and assessing their applicability in managing LNG supply chains. Energy security has evolved to include the protection of the entire energy supply chain and infrastructure rather than a consideration for the availability of resources alone. There is a particular focus on coupling sustainability and resilience/risk as part of the need to develop integrated approaches to manage energy supply chains to deliver cargo at minimal cost and environmental impact, and to ensure that supply chains can overcome vulnerabilities withstanding potential disruptions to the supply chain. Outcomes of this review demonstrate the possibility to develop multi criteria models, which consider sustainability dimensions within the LNG supply chains and to integrate parameters that form part of the annual delivery plan ensuring day to day LNG supply chain planning consider multiple objectives.

Section: Deterministic Models Of Lng Supply Chainmentioning

confidence: 99%

Sustainable Liquefied Natural Gas Supply Chain Management: A Review of Quantitative Models

Al-Haidous

Al‐Ansari

2019

“…Shaharudin et al (2018 [20]) hold that the relationship between recovery and integration functions and closed-loop supply chain adoption is partially regulated by the quantity, type, time, and quality of product returns. Taleizadeh et al (2018 [21]) considered a multi-cycle, multi-level, sustainable closed-loop supply chain that uses discounted returns as incentives to improve supply chain refurbished product recovery, helps improving sustainability effectively. Chen et al (2012 [22]) undertook the review of issues related to the manufacturer's pricing strategy in the chain, consisting of one manufacturer and two competing retailers with warranty-related requirements.…”

Section: Closed-loop Supply Chainmentioning

confidence: 99%

“…, q r * n , q r * r takes the maximum value, and the value range of t n and t r can be obtained via Equations (21) and (22). The certificate is thus completed.…”

Section: ω R *mentioning

confidence: 99%

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

Zhu

2019

Consumers cannot fully assess the quality of remanufactured products prior to purchase. To reduce consumer risk, closed-loop supply chains adopt a warranty strategy to enhance perceived value among customers and stimulate green growth. Based on Stackelberg game theory and considering consumers’ low-carbon and remanufactured product preferences, this paper aims to explore the decision-making efficiency of closed-loop supply chains with warranty services. The results of the study show that consumers’ confidence in purchasing remanufactured products has increased the demand for new products and remanufactured products, in turn also increasing the interest of the member companies of the supply chain, and stimulating the realization of the potential value of remanufacturing, which is conducive to green growth. When a remanufactured product warranty period meets certain conditions, the member companies of the supply chain can obtain optimal profit. The optimal warranty entity selection of a closed-loop supply chain with a warranty service depends on the warranty efficiency of each entity, thus making it necessary to examine the products of each warranty party.

“…They considered all three dimensions of sustainability in their forward network, and designed a branch and bound approach to solve it. Taleizadeh et al [60] introduced an MIP optimization model for designing a Sustainability 2019, 11, 5726 5 of 24 sustainable CLSC. They measure the social and environmental effects of supply chain decisions by Global Reporting Initiative guideline indicators.…”

Section: Scnd Problem Considering Sustainabilitymentioning

confidence: 99%

A Robust Fuzzy Optimization Model for Closed-Loop Supply Chain Networks Considering Sustainability

Zhang

Zhao

et al. 2019

Supply chain network design (SCND) is an important strategic decision determining the structure of each entity in the supply chain, which has an important impact on the long-term development of a company. An efficient and effective supply chain network is of vital importance for improving customer satisfaction, optimizing the allocation of resources, and increasing profitability. The environmental concerns and social responsibility awareness of the whole society have spurred researchers and managers to design sustainable supply chains (SSCs) integrating the economic, environmental, and social factors. In addition, the innate uncertainty of the SCND problem requires an integrated method to cope. In this regard, this study develops a multi-echelon multi-objective robust fuzzy closed-loop supply chain network (CLSCN) design model under uncertainty including all three dimensions of sustainability. This model considers the total cost minimization, carbon caps, and social impact maximization concurrently to realize supply chain sustainability, and is able to make a balance between the conflicting multiple objectives. Meanwhile, the uncertainty of the parameters is divided into two categories and addressed with two approaches: the first category is missed working days related to social impact, which is solved by the fuzzy membership theory; the second category is the demand and remanufacturing rate, which is settled by a robust optimization method. To validate the ability and applicability of the model and solution approach, a numerical example is conducted and solved using ILOG CPLEX. The result shows that the supply chain network structure and the value of the optimization objectives will change when considering sustainability and different degrees of uncertainty. This will enable supply chain managers to reduce the environmental impact and enhance the social benefits of their supply chain activities, and design a more stable supply chain to better cope with the influence of uncertainty.