The bi-objective periodic closed loop network design problem

Abstract Reverse supply chains are becoming a crucial part of retail supply chains given the recent reforms in the consumers’ rights and the regulations by governments. This has motivated companies around the world to adopt zero-landfill goals and move towards circular economy to retain the product’s value during its whole life cycle. However, designing an efficient closed loop supply chain is a challenging undertaking as it presents a set of unique challenges, mainly owing to the need to handle pickups and deliveries at the same time and the necessity to meet the customer requirements within a certain time limit. In this paper, we model this problem as a bi-objective periodic location routing problem with simultaneous pickup and delivery as well as time windows and examine the performance of two procedures, namely NSGA-II and NRGA, to solve it. The goal is to find the best locations for a set of depots, allocation of customers to these depots, allocation of customers to service days and the optimal routes to be taken by a set of homogeneous vehicles to minimise the total cost and to minimise the overall violation from the customers’ defined time limits. Our results show that while there is not a significant difference between the two algorithms in terms of diversity and number of solutions generated, NSGA-II outperforms NRGA when it comes to spacing and runtime.