An integrated model for closed-loop supply chain configuration and supplier selection: Multi-objective approach

Reverse logistics consists of all operations related to the reuse of products. External suppliers are one of the important members of reverse logistics and closed loop supply chain (CLSC) networks. However in CLSC network configuration models, suppliers are assessed based on purchasing cost and other factors such as on-time delivery are ignored. In this research, a general closed loop supply chain network is examined that includes manufacturer, disassembly, refurbishing, and disposal sites. Meanwhile, it is managed by the manufacturer. We propose an integrated model which has two phases. In the first phase, a framework for supplier selection criteria in RL is proposed. Besides, a fuzzy method is designed to evaluate suppliers based on qualitative criteria. The output of this stage is the weight of each supplier according to each part. In the second phase, we propose a multi objective mixed-integer linear programming model to determine which suppliers and refurbishing sites should be selected (strategic decisions), and find out the optimal number of parts and products in CLSC network (tactical decisions). The objective functions maximize profit and weights of suppliers, and one of them minimizes defect rates. To our knowledge, this model is the first effort to consider supplier selection, order allocation, and CLSC network configuration, simultaneously. The mathematical programming model is validated through numerical analysis. (C) 2012 Elsevier Ltd. All rights reserved.