Extension of multi-commodity closed-loop supply chain network design by aggregate production planning

In this work the influence of production and capacity planning on decisions regarding facility location, distribution quantities and component remanufacturing (and vice versa) in a closed-loop supply chain network (CLSCN) with multiple make-to-order products is studied. A mathematical model, the facility location, capacity and aggregate production planning with remanufacturing (FLCAPPR) model, for designing the CLSCN, for planning capacities at the facilities and for structuring the production and distribution system of the network cost-optimally, is formulated. It consists of a facility location model with component remanufacturing over multiple time periods, which is extended by capacity and production planning on an aggregate level. The problem is solved for an example set of data which is based on previous CLSC research in the copier industry. In a numerical study the effect of the extended planning approach on the decision to process returned products is determined. Furthermore, the FLCAPPR model is solved for different returned product quantities and numbers of periods in the planning horizon to study the influence on the network design and on the procuring, production and distribution quantities. It turns out that decisions regarding the locations of and the capacity equipment at facilities and decisions regarding the production and distribution system are interdependent; therefore, they have to be managed jointly. Furthermore, it is shown that the decision to process returned products and use remanufactured components in the production does depend not only on the costs, but also on the quantity of returned products and the length of the planning horizon.

[1]  Kathrin Fischer,et al.  Integrated Facility Location, Capacity, and Production Planning in a Multi-Commodity Closed Supply Chain Network , 2016 .

[2]  Joe Miemczyk,et al.  Photocopier remanufacturing at Xerox UK A description of the process and consideration of future policy issues , 2006 .

[3]  Rasaratnam Logendran,et al.  Aggregate production planning — A survey of models and methodologies , 1992 .

[4]  B. M. Khumawala,et al.  An Efficient Branch and Bound Algorithm for the Capacitated Warehouse Location Problem , 1977 .

[5]  V D R Guide,et al.  A closed-loop logistics model for remanufacturing , 1999, J. Oper. Res. Soc..

[6]  Pierre Dejax,et al.  The Design, Planning, and Optimization of Reverse Logistics Networks , 2005 .

[7]  V. Guide.  Production planning and control for remanufacturing: industry practice and research needs , 2000 .

[8]  Otto Rentz,et al.  Special Section: Closed-Loop Supply Chains: Practice and Potential: Closed-Loop Supply Chains for Spent Batteries , 2003, Interfaces.

[9]  Z. Shen.  Integrated supply chain design models: a survey and future research directions , 2007 .

[10]  R. Srivastava,et al.  Production planning and control for remanufacturing: a state - of - the - art survey , 1999 .

[11]  Otto Rentz,et al.  Modeling reverse logistic tasks within closed-loop supply chains: An example from the automotive industry , 2006, Eur. J. Oper. Res..

[12]  Gilvan C. Souza.  Closed-Loop Supply Chains: A Critical Review, and Future Research , 2013, Decis. Sci..

[13]  Vaidyanathan Jayaraman,et al.  Transportation, facility location and inventory issues in distribution network design: An investigation , 1998 .

[14]  Mir Saman Pishvaee,et al.  A possibilistic programming approach for closed-loop supply chain network design under uncertainty , 2010, Fuzzy Sets Syst..

[15]  Erwin van der Laan,et al.  Quantitative models for reverse logistics: A review , 1997 .

[16]  Edward A. Silver,et al.  A Tutorial on Production Smoothing and Work Force Balancing , 1967, Oper. Res..

[17]  Hartmut Stadtler,et al.  Supply Chain Management and Advanced Planning , 2000 .

[18]  V. Daniel R. Guide,et al.  OR FORUM - The Evolution of Closed-Loop Supply Chain Research , 2009, Oper. Res..

[19]  Umit Akinc,et al.  A New Approach to Aggregate Production Planning , 1986 .

[20]  B. Pelegrín,et al.  The return plant location problem: Modelling and resolution , 1998 .

[21]  J. Perl,et al.  Distribution Networks: Facility Location, Transportation and Inventory , 1988 .

[22]  Augusto Q. Novais,et al.  An optimization model for the design of a capacitated multi-product reverse logistics network with uncertainty , 2007, Eur. J. Oper. Res..

[23]  Rommert Dekker,et al.  A characterisation of logistics networks for product recovery , 2000 .

[24]  Elif Akçali,et al.  Network design for reverse and closed‐loop supply chains: An annotated bibliography of models and solution approaches , 2009, Networks.

[25]  Jacqueline M. Bloemhof-Ruwaard,et al.  THE IMPACT OF PRODUCT RECOVERY ON LOGISTICS NETWORK DESIGN , 2001 .

[26]  Vaidyanathan Jayaraman,et al.  Production planning for closed-loop supply chains with product recovery and reuse: an analytical approach , 2006 .