Application of exact and multi-heuristic approaches to a sustainable closed loop supply chain network design

Abdul Salam Khan, Qazi Salman Khalid, Khawar Naeem, Rafiq Ahmad, Razaullah Khan, Waqas Saleem, Catalin Iulian Pruncu

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Abstract

Closed-loop supply chains (CLSC) are gaining popularity due to their efficiency in addressing economic, environmental, and social concerns. An important point to ponder in the distribution of CLSC is that imperfect refrigeration and bad road conditions may result in product non-conformance during the transit and thus such products are to be returned to the supply node. This may hinder the level of customer satisfaction. This paper presents a sustainable closed-loop supply chain framework coupled with cross-docking subject to product non-conformance. A cost model is proposed to investigate the economic and environmental aspects of such systems. The transportation cost is analyzed in terms of total carbon emissions. A set of metaheuristics are administered to solve the model and a novel lower bound is proposed to relax the complexity of the proposed model. The results of different size problems are compared with the branch and bound approach and the proposed lower bound. The results indicate that the proposed research framework, mathe-matical model, and heuristic schemes can aid the decision-makers in a closed-loop supply chain context.

Original languageEnglish
Article number2433
Number of pages25
JournalSustainability (Switzerland)
Volume13
Issue number5
DOIs
Publication statusPublished - 24 Feb 2021

Keywords

  • closed loop supply chain
  • cross-docking
  • simulated annealing
  • sustainable logistics scheduling
  • tabu search

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