Modelling and analysis of network design for a closed‐loop supply chain

In this study, we model a single‐period, multi‐stage, closed‐loop supply chain and analyse it under various situations. The problem involves determining the flow of materials between each stage of the supply chain, so that customer demands are met with the objective of minimising the total cost of transportation, purchasing and maximising the amount of products repaired or recycled. The network is modelled using linear programming formulation and solved using solver LINGO. Computational experiments have been carried out to analyse the effects of parameters such as the rate of flow of returned product from customers, the rate of flow of returned product from collection centre to repairing centre and the rate of flow of returned product from disassembly centres to recycling centres. Based on the analysis of results, suitable combinations of the parameters have been identified.