Author = بنائی، علی

Designing a Closed Loop Supply Chain Network Considering the Uncertainty in the Quality of Returning Products and solving it with Lp-Shape Scenario Reduction Algorithm

Volume 8, Issue 4, Winter 2019, Pages 292-309

Mohammad Reza Fathi, Ali Banaei, Mahdi Nasrollahi

Abstract The design of the closed loop supply chain network is one of the most important and fundamental strategic decisions, with the proper design of which creates a desirable structure and facilitates the efficient management of the chain effectively. One of the most fundamental problems in the design of the supply chain network is the closed loop of uncertainty in the quality of the return products, due to the emergence of this problem, the lack of accurate and accurate information as well as the dynamics and complexity of the chain components. This research in the design space the closed loop supply chain network is for durable products, which in the short term cannot be damaged and allow the reuse of parts in the production of new products, recycling or sales on the secondary market. The main purpose of this study is to use a two-stage randomized programming model and maximize expected earnings for all of the quality status scenarios in which the target function is a combination of revenue from the sale of products and recycled materials and components Recovered, in addition to fixed costs for centers, processes, logistics and transportation. Due to the complexity of the model, the problem was used with the Lp-shape and CPLEX algorithms and the GAMS software was used to solve the problem. Based on the results of the research, the substantive response introduced by CPLEX for the C3 to C6 test questions is significantly far from the optimal responses obtained by the L-Shape method.