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Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market

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Abstract

This paper studies a location-inventory problem in a closed-loop supply chain by considering the demand and sales in the primary and secondary markets. Based on a real business program in a big e-commerce company, we develop a mixed-integer nonlinear programming model with a single hybrid production-recovery center, multiple hybrid distribution-collection centers, and many customer zones. As a closed-loop system, forward and reverse logistics flows in each market are considered, and the logistics flows between the two markets are also captured. Moreover, a novel heuristic approach based on differential evolution is designed to solve the model efficiently, and its performance is also compared with other popular methods. Finally, research implications and managerial insights are provided to advance real-world practices.

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Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant Number 61502359).

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Authors and Affiliations

  1. School of Management, Jinan University, Guangzhou, 510632, Guangdong, China

    Hao Guo

  2. Department of Industrial and Systems Engineering, The State University of New York at Buffalo, Buffalo, NY, 14260, USA

    Ying Zhang

  3. Department of Accounting, Temple University, Philadelphia, PA, 19122, USA

    Chunnan Zhang

  4. College of Computer Science and Technology, Wuhan University of Science and Technology, Wuhan, 430081, China

    Yu Liu

  5. Department of Industrial, Manufacturing and Systems Engineering, University of Texas at Arlington, Arlington, TX, 76019, USA

    Yuan Zhou

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  1. Hao Guo
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  2. Ying Zhang
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  3. Chunnan Zhang
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  4. Yu Liu
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  5. Yuan Zhou
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Correspondence to Ying Zhang.

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Guo, H., Zhang, Y., Zhang, C. et al. Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market. Ann Oper Res 291, 361–386 (2020). https://doi.org/10.1007/s10479-018-3039-0

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  • DOI: https://doi.org/10.1007/s10479-018-3039-0

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