Closed-Loop Supply Chain Network Design under Demand, Return and Quality Uncertainty
by Kadir Biçe
Department of Industrial Engineering, METU
In this study, we focus on a closed-loop supply chain (CLSC) network design problem in the presence of uncertainty in demand quantities, return rates, and quality of the returned products. We formulate the problem as a two-stage stochastic mixed-integer program that maximizes the total expected profit. The first-stage decisions in our model are facility location and capacity decisions, and the second-stage decisions are production quantities and the forward/backward flows on the network. We solve the problem by using the L-shaped method in iterative and branch-and-cut frameworks. In order to improve the computational efficiency, we consider various strategies such as adding mean-value cuts to the restricted master problem and generating multiple cuts instead of a single cut at each iteration or at each integer feasible solution. We use our numerical results to estimate the value of the stochastic solution and the expected value of perfect information in different problem settings.
Kadir Biçe is a MS student in Earth System Science Program at METU. He received MS degree from METU and BS degree from Bilkent University, both in Industrial Engineering. Currently he is working in a project which focuses on biogeochemical modeling of the Marmara Sea at METU Institute of Marine Sciences.
Friday, October 20, 2017 at 4.00 pm in IE03