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Paper Information

Journal:   PRODUCTION AND OPERATIONS MANAGEMENT   fall 2018-winter 2019 , Volume 9 , Number 2 (17) ; Page(s) 77 To 97.

Two-Stage and Robust Stochastic Optimization of Closed-Loop Supply Chain Network under Uncertainty

Author(s):  Behzadi Mona, Seifabrghy Mehdi*
* Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran, Iran
In this paper, a network of closed-loop supply chain is considered, including external supplier, production/recovery facilities, hybrid distribution/collection centers, disposal centers and customers. Generally, in the closed-loop chains production is done by the returned products, we can’ t achieve a correct analysis by considering one period. In many situations in the real world, we need to consider more than one period, therefore the studied model is assumed in the form of some multiperiod and suppliers are used to supply the shortage of parts. In this paper, it is assumed that parameters of demand, quantity and quality of returns and variable costs are uncertain. To evaluate the uncertainty, two approaches of two-stage and robust stochastic optimization have been used. The results show that performance of robust optimization is better than the two-stage stochastic optimization under uncertainty.
Keyword(s): Robust Optimization,Two-stage Stochastic Optimization,Closed-loop Supply Chain,Uncertainty
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