The Integrated Production-Inventory-Routing Problem of EOL products with simultaneous delivery and pickup
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Production, inventory and distribution with returns management are three key decisions in closed-loop supply chain planning. In order to achieve an effective operational performance level, it is important for these three decisions to be integrated, especially in closed-loop supply chains (CLSC) with remanufacturing operation. In this paper, we address the integrated optimization of Production, Inventory control and Routing decisions with remanufacturing of End-Of-Life (EOL) products (IPIRP-R) related to supplying several customers from a central plant. In particular, we consider a CLSC in which two production lines and a fleet of homogenous capacited vehicle, who make multiple trips over the planning horizon, are available to manufacture new products, remanufacture EOL products, deliver final products and pickup EOL ones, respectively. The aim of solving the IPIRP-R model is to minimize jointly the total production, setup, inventory and routing cost over a finite planning horizon. The originality of our study lies in the fact of jointly treating the single-item capacitated lot-sizing with remanufacturing and the vehicle routing problem with simultaneous pickup and delivery in a single framework. Computational experiment is conducted on a set of randomly generated instances. An illustrative example to illustrate the relevance of our model is given.