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author:

Chen, Ding (Chen, Ding.) [1] | Chu, Feng (Chu, Feng.) [2] | Liu, Ming (Liu, Ming.) [3] | Huang, Yufei (Huang, Yufei.) [4]

Indexed by:

EI Scopus SCIE

Abstract:

Resource scarcity has driven growing interest in circular economy (CE). Closed-loop supply chain (CLSC) with returnable transport items (RTIs) in the food industry is an important component of CE. However, existing works on food CLSC with RTIs have not simultaneously considered the perishability, facility location, and uncertain demand under limited information. Therefore, this work addresses a new food CLSC optimisation problem. We first propose a non-linear chance-constrained programming model. It is then transformed into a mixed-integer linear programming model via using the distribution-free (DF) method and sample average approximation (SAA) method, respectively. An illustrative example reveals that the DF method needs only 10.50% of the computation time of the SAA method. To address large-scale problems, an improved Lagrangian relaxation (LR) method is developed. To address the computational challenge in large-scale problems, an improved Lagrangian relaxation (LR) algorithm is developed. Results show that CPLEX achieves a gap of 75.57%, while the LR surpasses it by finding near-optimal solutions with a gap of 1.22%, using only 31.82% of the computation time required by CPLEX. For this work, the main insights are summarised: (1) extending product shelf life can reduce the total cost; and (2) to alleviate uncertain demand and production risks, production capacity and product inventory capacity can be appropriately expanded, but excessive investment may not improve returns.

Keyword:

Circular economy closed-loop supply chain distribution-free Lagrangian relaxation perishability returnable transport items

Community:

  • [ 1 ] [Chen, Ding]Fuzhou Univ, Sch Econ & Management, Fuzhou, Peoples R China
  • [ 2 ] [Chen, Ding]Univ Evry, Univ Paris Saclay, Lab IBISC, Evry, France
  • [ 3 ] [Chu, Feng]Univ Evry, Univ Paris Saclay, Lab IBISC, Evry, France
  • [ 4 ] [Liu, Ming]Tongji Univ, Sch Econ & Management, Shanghai, Peoples R China
  • [ 5 ] [Huang, Yufei]Trinity Coll Dublin, Trinity Business Sch, Dublin, Ireland

Reprint 's Address:

  • [Liu, Ming]Tongji Univ, Sch Econ & Management, Shanghai, Peoples R China;;

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Source :

INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH

ISSN: 0020-7543

Year: 2024

Issue: 7

Volume: 63

Page: 2526-2555

7 . 0 0 0

JCR@2023

Cited Count:

WoS CC Cited Count:

SCOPUS Cited Count:

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 1

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