Analysis of closed loop supply chain using genetic algorithm and particle swarm optimisation

There are many reasons for the growing interest in reverse logistics. The most prominent reasons are the growing concern for the environment and cost reduction. Next to environment, consumers demand for clean manufacturing and recycling. Hence, customers and retailers expect original equipment manufacturers to set up a proper reverse logistics system and expect the returned products to be processed and recovered in an environmentally responsible way and another reason is cost reduction. A well-managed reverse logistics programme can provide important cost savings in procurement, disposal, inventory carrying and transportation. In this context, looking at the entire supply chain is the best starting point for solutions. Supply chain management aims at the integration of traditional ‘forward’ supply chain processes, avoiding local optimisation by emphasising integrality. The main objective of this paper is to design an integrated forward logistics multi-echelon distribution inventory supply chain model (FLMEDIM) and closed loop multi-echelon distribution inventory supply chain model (CLMEDIM) for the built-to-order environment using genetic algorithm and particle swarm optimisation. In this paper, the proposed model is validated by considering two case studies: one for a tyre manufacturer and the other for a plastic goods manufacturer both located in the southern part of India. This paper utilises the multi-echelon distribution inventory supply chain model proposed by Haq and Kannan (2006a) for the FLMEDIM. The software used was written in the Java programming language.

[1]  Askiner Gungor,et al.  Issues in environmentally conscious manufacturing and product recovery: a survey , 1999 .

[2]  L. Wein,et al.  Inventory Management of Remanufacturable Products , 2000 .

[3]  Tamer Boyacı,et al.  The effect of categorizing returned products in remanufacturing , 2004 .

[4]  E. A. van deLaan,et al.  An (s,Q) inventory model with remanufacturing and disposal , 1996 .

[5]  R. V. Hoek,et al.  From reversed logistics to green supply chains , 1999 .

[6]  Hark Hwang,et al.  A returns policy for distribution channel coordination of perishable items , 2004, Eur. J. Oper. Res..

[7]  Gp Gudrun Kiesmüller,et al.  An inventory model with dependent product demands and returns , 2001 .

[8]  Riccardo Poli,et al.  Particle swarm optimization , 1995, Swarm Intelligence.

[9]  G. Kannan,et al.  Design of an integrated supplier selection and multi-echelon distribution inventory model in a built-to-order supply chain environment , 2006 .

[10]  Riccardo Poli,et al.  Particle Swarm Optimisation , 2011 .

[11]  L. V. Wassenhove,et al.  Interactions between operational research and environmental management , 1995 .

[12]  Leo Kroon,et al.  Returnable containers: an example of reverse logistics , 1995 .

[13]  Laura Meade,et al.  A conceptual model for selecting and evaluating third‐party reverse logistics providers , 2002 .

[14]  S. Minner.  Strategic safety stocks in reverse logistics supply chains , 2001 .

[15]  Patroklos Georgiadis,et al.  The effect of environmental parameters on product recovery , 2004, Eur. J. Oper. Res..

[16]  A. Spicer,et al.  Third-party demanufacturing as a solution for extended producer responsibility , 2004 .

[17]  Govindan Kannan,et al.  Effect of forecasting on the multi-echelon distribution inventory supply chain cost using neural network, genetic algorithm and particle swarm optimisation , 2006 .

[18]  Rommert Dekker,et al.  Controlling inventories with stochastic item returns: A basic model , 2002, Eur. J. Oper. Res..

[19]  Jj Jan Kok,et al.  Optimising product recycling chains by control theory , 2000 .

[20]  Belarmino Adenso-Díaz,et al.  Environmental and reverse logistics policies in European bottling and packaging firms , 2004 .

[21]  John A. Muckstadt,et al.  An analysis of single item inventory systems with returns , 1981 .

[22]  Gp Gudrun Kiesmüller,et al.  A continuous time inventory model for a product recovery system with multiple options , 2002 .

[23]  K. Inderfurth,et al.  How to set the holding cost rates in average cost inventory models with reverse logistics , 2000 .

[24]  Rainer Kleber,et al.  Optimal control of production and remanufacturing in a simple recovery model with linear cost functions , 2001, OR Spectr..

[25]  R. Teunter,et al.  On the necessity of a disposal option for returned items that can be remanufactured , 2002 .

[26]  Erwin van der Laan,et al.  Product remanufacturing and disposal: A numerical comparison of alternative control strategies , 1996 .

[27]  Stefan Minner,et al.  An environmental analysis of the reverse supply chain of SLI batteries , 2002 .

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

[29]  John H. Holland,et al.  Adaptation in Natural and Artificial Systems: An Introductory Analysis with Applications to Biology, Control, and Artificial Intelligence , 1992 .

[30]  David F. Pyke,et al.  Periodic review, push inventory policies for remanufacturing , 2002, Eur. J. Oper. Res..

[31]  Erik Rolland,et al.  The design of reverse distribution networks: Models and solution procedures , 2003, Eur. J. Oper. Res..

[32]  E. A. van deLaan,et al.  Production planning and inventory control with remanufacturing and disposal , 1997 .

[33]  Govindan Kannan,et al.  Two-echelon distribution-inventory supply chain model for the bread industry using genetic algorithm , 2006 .

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

[35]  Samar K. Mukhopadhyay,et al.  Reverse logistics in e‐business , 2004 .

[36]  A. Tan,et al.  Improving the performance of a computer company in supporting its reverse logistics operations in the Asia‐Pacific region , 2003 .

[37]  V. Daniel R. Guide,et al.  Building contingency planning for closed-loop supply chains with product recovery , 2003 .

[38]  C. Hicksa,et al.  A functional model of supply chains and waste , 2004 .