A joint pricing-network design model for a resilient closed-loop supply chain under quantity discount

Document Type: Research Paper

Authors

1 School of Industrial Engineering, Iran University of Science and Technology

2 School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

3 iran university of science and technology

Abstract

In this paper, a novel resilient multi-echelon closed-loop location-allocation-inventory problem (RMCLIP) is addressed that optimizes strategic and tactical decisions simultaneously. In order to represent the purchasing cost of raw material from the supplier, a pricing model under quantity discounts is employed in the closed-loop supply chain (CLSC). Considering the capability of returning the reworked products to the forward logistics that can affect the ordering patterns of distribution centers (DCs) is another significant difference between this study and similar related researches. Furthermore, resilient capacity approach is used to provide a flexible SC toward the uncertainty of reworking centers (RCs) and suppliers' capacity. As this point, based on some facilities' capacity uncertainty, the robust model is formulated. The computational results and sensitivity analyses are presented using GAMS software to reveal the applicability of the proposed model. The results are analyzed in depth to provide some managerial insights.

Keywords

Main Subjects


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