A Novel Sustainable Closed-loop Supply Chain Network Design by Considering Routing and Quality of Products

Content Provider	Semantic Scholar
Author	Mirmohammadi, S. Hamid Sahraeian, Rashed
Copyright Year	2018
Abstract	One of the strategic decisions that can be made in supply chain is designing its network which has high impact on costs, and satisfaction level of customers. This paper focuses on designing a distribution network including determining the number and location of facilities, how to allocate the customers in network, and also determining the extent of carrying different products from different origins to different destinations; in this distribution network, according to the existing restrictions, customer demand is considered at minimum cost. In addition to secondary chain and reuse market as a retrieval option, model flexibility in defining quality and routing-locating is also among the innovation points of the model. Firstly, in forward chain the model consists of supplier, manufacturer, warehouse, distributor, and customer. In reverse chain, the model includes reuse market, secondary supply chain, collection, reprocess and disposal centers. The model could be generalized to industries with various strategies. Secondly, a sensitivity analysis was performed on a numerical example; also the nondominated sorting algorithm (NSGA II) was used for a large-sized sample; which its performance was measured by analysis of variance (ANOVA) test. The results show that, returned products with average quality lead to lower costs and higher social benefits; and meta-heuristic NSGA II method is efficient. Because, it creates business opportunities and leads to less economic and environmental costs. doi: 10.5829/ije.2018.31.11b.16 NOMENCLATURE PARAMETERS qurem Minimum quality required for reprocessing k vjq qurec Minimum quality required for recycling P vji vcqa Operational cost of warehouse q for product a Q vjm vcia Operational cost of distributor i for product a I vjn vcma Operational cost of collector m for product a J vjl vcna Operational cost of reprocessor n for product a M vlpa vcla Operational cost of disposal center l for product a N vlq vjpa Number of jobs created due to producing a unit of product a by producer p L vjpa vjq Number of jobs created due to working at warehouse q O set of reuse markets (o=1,...,O) vji Number of jobs created due to working at distributor i S set of secondary supply chain (s=1,...,S) vjm Number of jobs created due to working at collector m C set of raw materials (c=1,...,C) vjn Number of jobs created due to working at reprocessor n A set of products (a=1,...,A) vjl Number of jobs created due to working at destruction center l V set of vehicle types (v=1,...,V) vlpa Lost days due to job losses during produce product a by producer p SETS vlq Lost days due to job losses during operations at warehouse q capk Maximum capacity of supplier k vli Lost days due to job losses during operations at distributor i capp Maximum capacity of producer p vlm Lost days due to job losses during operations at collector m *Coresponding Author Email: sahraeian@shahed.ac.ir (R. Sahraeian) 1919 S. H. Mirmohammadi and R. Sahraeian / IJE TRANSACTIONS B: Applications Vol. 31, No. 11, (November 2018) 1918-1928 capq Maximum capacity of warehouse q vln Lost days due to job losses during operations at reprocessor n capi Maximum capacity of distributor i vll Lost days due to job losses during operations at destruction center l capm Maximum capacity of collector m vola Volume of a unit of product a capn Maximum capacity of reprocessor n volc Volume of a unit of raw c capl Maximum capacity of disposal center l αja The rate of returns from customer zone j for product a capv Maximum capacity of vehicle v γn Percentage of products sent from reprocessing center n to producers cxyv Transportation cost from facility x to facility y with vehicle v, x,yε{k,p,q,i,j,m,n,l,o,s}, x≠y Cac Number of raw material c in BOM of product a cpv Cost of vehicle rent v vola Volume of a unit of product a dja Demand of customer zone j for product a DECISION VARIABLES eopa Environmental effects of producing a unit of product a by producer p Nmlv Number of vehicle v from collector m to destruction center l eoq Environmental effects of establishing warehouse q Nmsv Number of vehicle v from collector m to secondary supply chain eoi Environmental effects of establishing distributor i Hpa The amount of producing production a by producer p eom Environmental effects of establishing collector m RAja The amount of returned product a suitable for repairing eon Environmental effects of reprocessing reprocessor center n RBja The amount of returned product a suitable for reprocessing eol Environmental effects of disposing destruction center l RCjt The amount of returned product a suitable for recycling etxyv Environmental effects of transportation from facility x to facility y with vehicle v, x,yε{k,p,q,i,j,m,n,l,o,s}, x≠y RDja The amount of returned product a suitable for destruction fcp Fixed cost of producing by producer p σk = {0,1} If supplier k chosen, it gets value 1 and 0 otherwise fcq Fixed cost of establishing warehouse q yi = {0,1} If distribution i chosen, it gets value 1 and 0 otherwise fci Fixed cost of establishing distributor i yq = {0,1} If warehouse q chosen, it gets value 1 and 0 otherwise fcm Fixed cost of establishing collector m SMkpc Number of raw material c shipped from supplier k to producer p fjq Number of jobs created due to establishing warehouse q SMxya Number of product a shipped from facility x to facility y, x,yε{p,q,i,j,m,n,l,o,s}, x≠y fji Number of jobs created due to establishing distribution i Nxyv Number of vehicle v from facility x to facility y, x,yε{p,q,i,j,m,n,l,o,s}, x≠y fjm Number of jobs created due to establishing collector m ym = {0,1} If collector m chosen, it gets value 1 and 0 otherwise mcpa Cost of producing a unit of product a by producer p Aja = {0,1} If quality of returned product a suitable for repairing, it gets the value of 1 and0 otherwise pckc Purchasing cost of raw material c at supplier k Bja = {0,1} If quality of returned product a suitable for reprocessing, it gets the value of 1 and 0 otherwise quja Quality of return product a from customer j Cja = {0,1} If quality of returned product a suitable for recycling, it gets the value of 1 and0 otherwise qurep Minimum quality required for repairing Dja = {0,1} If quality of returned product a suitable for destruction, it gets the value of 1 and 0 otherwise
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DOI	10.5829/ije.2018.31.11b.16
Alternate Webpage(s)	http://research.shahed.ac.ir/WSR/SiteData/PaperFiles/95823_10646510238.pdf
Alternate Webpage(s)	https://doi.org/10.5829/ije.2018.31.11b.16
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article