A Mixed Integer Linear Programming Model Proposal for Network Design of a Multi-Phase, Environmental and Flexible Closed Loop Supply Chain

Abstract

To provide a competitive edge in today's conditions of globalization businesses are required to go beyond the classical methods. When we take into account the basic structure of the contemporary value chain and its importance, we can describe supply chains as “Outstanding Competitiveness Creator Source" for businesses. In this context this can be said that a supply chain network design decision whis has a strategic importance in all processes inculiding procurement of raw materials, manufactured products and services delivered to the customer, even after sales services is a critical decision for businesses. On the other hand because of the awareness of customers, being more searching and questioning and taking into account not only ergonomics but also the environmental impact of products in the information society, businesses are required to make environmentally sensitive activities in all conducting business processes. In this study, a model is proposed for the design of a supply chain distribution network that may be suitable for new business processes which are shaped by globalization and the information society’s effect. The model includes raw material supply, production, distribution, recycling activities design as flexible and environmentally sensitive processes for a product with more than one component.

DOI: 10.5901/mjss.2013.v4n10p586