A Possibilistic Reliable and Responsive Closed Loop Supply Chain Network Design Model under Uncertainty

Reliability of supply chain networks is an important issue affecting customer satisfaction and profitability of organizations. However, occurrence of disruptions such as flood, earthquake and fire could ruin performance of supply chains. Uncertainty of parameters is another important factor that could lower quality of long-term plans of companies. Hence, uncertainty of parameters and disruption strike are important issues adversely influencing reliability of networks. Also, responsiveness of supply chains is a significant matter that should be considered carefully while designing distribution networks. Responsiveness could increase customer loyalty and satisfaction that could result in increasing market share of companies and their long-term planned benefit. Regarding alluded matters, the aim of this paper is designing a reliable forward-reverse supply chain network that minimizes total costs of network design along with maximization of total responsiveness of distribution network. Extended closed-loop network is capable of considering environmental issues by caring about end-of-life products. Designing reverse supply chain network aside with forward ones could decrease bad environmental impact of end-of-life products. Notably, to cope with adverse effects of disruptions, a scenario-based approach is suggested that enables considering partial and complete disruption of capacity of facilities. Additionally, an effective possibilistic programming method is applied to appropriately control uncertainty of parameters. As quality of raw materials is important to produce high-quality products, minimum acceptable quality level of raw materials is considered in extended model to maximize customer satisfaction. Finally, it should be noted that designed test problems show appropriate performance of suggested model and its applicability in real world case studies. Extended model is solved regarding different risk-aversion levels and sensitivity analysis is performed for different parameters of network design that shows effectual performance of proposed model.

[1]  Alain Martel,et al.  The design of robust value-creating supply chain networks , 2010, Eur. J. Oper. Res..

[2]  Christopher S. Tang Perspectives in supply chain risk management , 2006 .

[3]  Reza Zanjirani Farahani,et al.  Resilient supply chain network design under competition: A case study , 2017, Eur. J. Oper. Res..

[4]  Kannan Govindan,et al.  Investigating risk and robustness measures for supply chain network design under demand uncertainty: A case study of glass supply chain , 2017 .

[5]  Xiangtong Qi,et al.  A two-stage supply chain with demand sensitive to price, delivery time, and reliability of delivery , 2016, Ann. Oper. Res..

[6]  Mostafa Zandieh,et al.  Robust bi-level optimization for green opportunistic supply chain network design problem against uncertainty and environmental risk , 2017, Comput. Ind. Eng..

[7]  Hakan Yildiz,et al.  Reliable Supply Chain Network Design , 2016, Decis. Sci..

[8]  Nita H. Shah,et al.  Study of Imperfect Manufacturing System with Preservation Technology Investment Under Inflationary Environment for Quadratic Demand: A Reverse Logistic Approach , 2017 .

[9]  Ali Mahmoodirad,et al.  Two-Stage Supply Chain Network Design Problem with Interval Data☆ , 2016 .

[10]  Andrew Lim,et al.  Reliable logistics networks design with facility disruptions , 2011 .

[11]  A. Almeida,et al.  A Multicriteria Decision Model for Collaborative Partnerships in Supplier Strategic Management , 2016 .

[12]  Jafar Razmi,et al.  Facility location in responsive and flexible supply chain network design (SCND) considering outsourcing , 2013 .

[13]  Christopher S. Tang,et al.  Researchers' Perspectives on Supply Chain Risk Management , 2011 .

[14]  Kin Keung Lai,et al.  A stochastic programming approach for multi-site aggregate production planning , 2006, J. Oper. Res. Soc..

[15]  Hokey Min,et al.  Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms , 2014 .

[16]  Donya Rahmani,et al.  Strategic and operational supply chain network design to reduce carbon emission considering reliability and robustness , 2017 .

[17]  Yizhi Wang,et al.  Supply Chain Network Design under Demand Uncertainty and Supply Disruptions: A Distributionally Robust Optimization Approach , 2016, Sci. Program..

[18]  Mark S. Daskin,et al.  A facility reliability problem: Formulation, properties, and algorithm , 2010 .

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

[20]  Reza Tavakkoli-Moghaddam,et al.  International Journal of Computer Integrated Manufacturing a Credibility-constrained Programming for Reliable Forward–reverse Logistics Network Design under Uncertainty and Facility Disruptions a Credibility-constrained Programming for Reliable Forward–reverse Logistics Network Design under Uncertai , 2022 .

[21]  Hui-Ming Wee,et al.  An improved algorithm and solution on an integrated production-inventory model in a three-layer supply chain , 2012 .

[22]  Emran Mohammadi,et al.  A multi-objective reliable programming model for disruption in supply chain , 2013 .

[23]  Reza Tavakkoli-Moghaddam,et al.  Reliable design of a closed loop supply chain network under uncertainty: An interval fuzzy possibilistic chance-constrained model , 2013 .

[24]  S. Ali Torabi,et al.  A robust possibilistic programming approach for pharmaceutical supply chain network design , 2015, Comput. Chem. Eng..

[25]  Reza Tavakkoli-Moghaddam,et al.  A new multi-objective stochastic model for a forward/reverse logistic network design with responsiveness and quality level , 2013 .

[26]  T. Sowlati,et al.  A hybrid multi-stage stochastic programming-robust optimization model for maximizing the supply chain of a forest-based biomass power plant considering uncertainties , 2016 .

[27]  Mohammad Mohammadi,et al.  Hybrid Genetic Algorithm and Invasive Weed Optimization via Priority Based Encoding for Location-Allocation Decisions in a Three-Stage Supply Chain , 2017, Asia Pac. J. Oper. Res..

[28]  Weijun Xie,et al.  Reliable Location-Routing Design Under Probabilistic Facility Disruptions , 2016, Transp. Sci..

[29]  L. Cárdenas-Barrón,et al.  An optimal solution to a three echelon supply chain network with multi-product and multi-period , 2014 .

[30]  Krishnendu Shaw,et al.  Low carbon chance constrained supply chain network design problem: a Benders decomposition based approach , 2016, Comput. Ind. Eng..

[31]  Amelia Bilbao-Terol,et al.  Linear programming with fuzzy parameters: An interactive method resolution , 2007, Eur. J. Oper. Res..

[32]  Reza Tavakkoli-Moghaddam,et al.  A robust possibilistic programming approach to multi-period location-allocation of organ transplant centers under uncertainty , 2014, Comput. Ind. Eng..

[33]  Ebrahim Teimoury,et al.  Risk-pooling strategy, lead time, delivery reliability and inventory control decisions in a stochastic multi-objective supply chain network design , 2016, Ann. Oper. Res..

[34]  Angappa Gunasekaran,et al.  The design of a responsive sustainable supply chain network under uncertainty , 2015 .

[35]  Fariborz Jolai,et al.  Robust and reliable forward–reverse logistics network design under demand uncertainty and facility disruptions , 2014 .

[36]  Jafar Razmi,et al.  Introducing a mixed-integer non-linear fuzzy model for risk management in designing supply chain networks , 2013 .

[37]  Mir Saman Pishvaee,et al.  Robust possibilistic programming for socially responsible supply chain network design: A new approach , 2012, Fuzzy Sets Syst..

[38]  H. Wee,et al.  Supplier Selection and Competitiveness — A Case Study on the Surface Mount Industry , 2014 .

[39]  D. Bogataj,et al.  Measuring the supply chain risk and vulnerability in frequency space , 2007 .

[40]  Mir Saman Pishvaee,et al.  Novel robust fuzzy mathematical programming methods , 2016 .

[41]  Mir Saman Pishvaee,et al.  Multiobjective Robust Possibilistic Programming Approach to Sustainable Bioethanol Supply Chain Design under Multiple Uncertainties , 2016 .

[42]  Lawrence V. Snyder,et al.  Reliability Models for Facility Location: The Expected Failure Cost Case , 2005, Transp. Sci..