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

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2017

Author

Biçe, Kadir

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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.

Subject Keywords

Business logistics., Supply and demand., Stochastic programming.

URI

http://etd.lib.metu.edu.tr/upload/12620965/index.pdf
https://hdl.handle.net/11511/26445

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Graduate School of Natural and Applied Sciences, Thesis

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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.