Closed-loop supply chain network design under demand, return and quality uncertainty

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2017
Biçe, Kadir
In this study,we focus o na closed-loop supply chain(CLSC) network design problem in the presence of uncertainty in demand quantities, return rates, and quality of the returned products. We formulate the problem as a two-stagestochastic mixed-integer program that maximizes the total expected profit. The first-stage decisions in our model are facility location and capacity decisions,and the second-stage decisions are production quantities and the forward/backward flows on the network. We solve the problem by using the L-shaped method in iterative and branch-and-cut frameworks. In order to improve the computational efficiency, we consider various strategies such as adding mean-value cuts to the restricted master problem and generating multiple cuts instead of a single cut a teach iteration or a teach integer feasible solution. We use our numerical results to estimate the value of th estochastic solution and the expected value of perfect information in different problem settings.

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Citation Formats
K. Biçe, “Closed-loop supply chain network design under demand, return and quality uncertainty,” M.S. - Master of Science, Middle East Technical University, 2017.