Supply Chain Design and Planning with Product Return: An Optimization Approach

Citation:
Salema, Maria Isabel Gomes, A. P. Barbosa-Póvoa, and Augusto Q. Novais. "Supply Chain Design and Planning with Product Return: An Optimization Approach." In Production and Operations Management Society Conference, 1-11. Boston, USA, 2006.

Abstract:

This paper addresses the design and planning of supply chains with product return. A graph approach is used as the modelling methodology. Commonly, the application of graph approaches to the design of supply chains, considers nodes as chain entities and arcs as connections between them. These assumptions are extended in the present work where products may also be associated with both nodes and arcs. A multi-product network formulation is obtained which is further generalised to consider the modelling of time, resulting in a dynamic multi-product network model with product return. This generalisation assumes that any node is a transformation point which allows inbound and outbound products to differ. Considering four different kinds of entities (factories, warehouses, sorting centres and customers), proper functions are defined for each one: production, postponement, usage and selection. An example, base on a Portuguese industry case, is applied in order to corroborate the model applicability and adequacy to real world problems.

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