A hybrid particle swarm optimization and genetic algorithm for closed-loop supply chain network design in large-scale networks

Abstract Today, tracking the growing interest in closed-loop supply chain shown by both practitioners and academia is easily possible. There are many factors, which transform closed-loop supply chain issues into a unique and vital subject in supply chain management, such as environmental legislation, customer awareness, and the economical motivations of the organizations. However, designing and planning a closed-loop supply chain is an NP-hard problem, which makes it difficult to achieve acceptable results in a reasonable time. In this paper, we try to cope with this problem by proposing a new and effective solution methodology. On the other hand, this research considers improving closed-loop supply chain network optimization processes through dealing with mathematical programming tools; developing a deterministic multi-product, multi-echelon, multi-period model; and finally presenting an appropriate methodology to solve various sizes of instances. Both design and planning decision variables (location and allocation) are considered in the proposed network. Besides, in order to have a reliable performance evaluation process, large-scale instances are regarded in computational analysis. Two popular meta-heuristic algorithms are considered to develop a new elevated hybrid algorithm: the genetic algorithm (GA) and particle swarm optimization (PSO). Analyzing the above-mentioned algorithms’ strengths and weaknesses leads us to attempt to improve the GA using some aspects of PSO. Therefore, a new hybrid algorithm is proposed and a complete validation process is undertaken using CPLEX and MATLAB software. In small instances, the global optimum points of CPLEX for the proposed hybrid algorithm are compared to genetic algorithm, and particle swarm optimization. Then, in small, mid, and large-size instances, performances of the proposed meta-heuristics are analyzed and evaluated. Finally, a case study involving an Iranian hospital furniture manufacturer is used to evaluate the proposed solution approach. The results reveal the superiority of the proposed hybrid algorithm when compared to the GA and PSO.