Dynamic closed-loop supply chain network design based on recall and return of goods

Abstract

On the basis of the minimum principle of the total cost, using the structure of logistics network and Mixed-integer Non-linear programming, we propose a mathematical model, taking the uncertainty of demand and number of recall and return of goods, the dynamicity of closed-loop network, the environment of E-commerce, and the time value of currency into account. And then we use LINGO to solve the problem, in order to determine the number of constructing or expanding the facilities, and optimum flows of transportation between the various facilities. At the end of this paper, we prove the validity and feasibility of the model through a practical example.