Design of Closed Loop Supply Chains

Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.supply chain management;reverse logistics;facility location;network design;product design

Multiagent Optimization Approach to Supply Network Configuration Problems With Varied Product-Market Profiles

IEEE This article demonstrates the application of a novel multiagent modeling approach to support supply network configuration (SNC) decisions toward addressing several challenges reported in the literature. These challenges include: enhancing supply network (SN)-level performance in alignment with the goals of individual SN entities; addressing the issue of limited information sharing between SN entities; and sustaining competitiveness of SNs in dynamic business environments. To this end, a multistage, multiechelon SN consisting of geographically dispersed SN entities catering to distinct product-market profiles was modeled. In modeling the SNC decision problem, two types of agents, each having distinct attributes and functions, were used. The modeling approach incorporated a reverse-auctioning process to simulate the behavior of SN entities with differing individual goals collectively contributing to enhance SN-level performance, by means of setting reserve values generated through the application of a genetic algorithm. A set of Pareto-optimal SNCs catering to distinct product-market profiles was generated using Nondominated Sorting Genetic Algorithm II. Further evaluation of these SNCs against additional criteria, using a rule-based approach, allowed the selection of the most appropriate SNC to meet a broader set of conditions. The model was tested using a refrigerator SN case study drawn from the literature. The results reveal that a number of SNC decisions can be supported by the proposed model, in particular, identifying and evaluating robust SNs to suit varied product-market profiles, enhancing SC capabilities to withstand disruptions and developing contingencies to recover from disruptions

Optimisation of energy supply at off-grid healthcare facilities using Monte Carlo simulation

In this paper, we present a methodology for the optimisation of off-grid hybrid systems (photovoltaic-diesel-battery systems). A stochastic approach is developed by means of Monte Carlo simulation to consider the uncertainties of irradiation and load. The optimisation is economic; that is, we look for a system with a lower net present cost including installation, replacement of the components, operation and maintenance, etc. The most important variable that must be estimated is the batteries lifespan, which depends on the operating conditions (charge/discharge cycles, corrosion, state of charge, etc.). Previous works used classical methods for the estimation of batteries lifespan, which can be too optimistic in many cases, obtaining a net present cost of the system much lower than in reality. In this work, we include an advanced weighted Ah-throughput model for the lead-acid batteries, which is much more realistic. The optimisation methodology presented in this paper is applied in the optimisation of the electrical supply for an off-grid hospital located in Kalonge (Democratic Republic of the Congo). At the moment, the power supply relies on a diesel generator; batteries are used in order to ensure the basic supply of energy when the generator is unavailable (night hours). The optimisation includes the possibility of adding solar photovoltaic (PV) panels to improve the supply of electrical energy. The results show that optimal design could achieve a 28% reduction in the levelised cost of energy and a 54% reduction in the diesel fuel used in the generator, thereby reducing pollution. Furthermore, we discuss possible improvements to the telecommunications of the hospital

The stability of a graph partition: A dynamics-based framework for community detection

Recent years have seen a surge of interest in the analysis of complex networks, facilitated by the availability of relational data and the increasingly powerful computational resources that can be employed for their analysis. Naturally, the study of real-world systems leads to highly complex networks and a current challenge is to extract intelligible, simplified descriptions from the network in terms of relevant subgraphs, which can provide insight into the structure and function of the overall system. Sparked by seminal work by Newman and Girvan, an interesting line of research has been devoted to investigating modular community structure in networks, revitalising the classic problem of graph partitioning. However, modular or community structure in networks has notoriously evaded rigorous definition. The most accepted notion of community is perhaps that of a group of elements which exhibit a stronger level of interaction within themselves than with the elements outside the community. This concept has resulted in a plethora of computational methods and heuristics for community detection. Nevertheless a firm theoretical understanding of most of these methods, in terms of how they operate and what they are supposed to detect, is still lacking to date. Here, we will develop a dynamical perspective towards community detection enabling us to define a measure named the stability of a graph partition. It will be shown that a number of previously ad-hoc defined heuristics for community detection can be seen as particular cases of our method providing us with a dynamic reinterpretation of those measures. Our dynamics-based approach thus serves as a unifying framework to gain a deeper understanding of different aspects and problems associated with community detection and allows us to propose new dynamically-inspired criteria for community structure.Comment: 3 figures; published as book chapte

Robust Multi-Objective Sustainable Reverse Supply Chain Planning: An Application in the Steel Industry

In the design of the supply chain, the use of the returned products and their recycling in the production and consumption network is called reverse logistics. The proposed model aims to optimize the flow of materials in the supply chain network (SCN), and determine the amount and location of facilities and the planning of transportation in conditions of demand uncertainty. Thus, maximizing the total profit of operation, minimizing adverse environmental effects, and maximizing customer and supplier service levels have been considered as the main objectives. Accordingly, finding symmetry (balance) among the profit of operation, the environmental effects and customer and supplier service levels is considered in this research. To deal with the uncertainty of the model, scenario-based robust planning is employed alongside a meta-heuristic algorithm (NSGA-II) to solve the model with actual data from a case study of the steel industry in Iran. The results obtained from the model, solving and validating, compared with actual data indicated that the model could optimize the objectives seamlessly and determine the amount and location of the necessary facilities for the steel industry more appropriately.This article belongs to the Special Issue Uncertain Multi-Criteria Optimization Problem

Multistage Stochastic Portfolio Optimisation in Deregulated Electricity Markets Using Linear Decision Rules

The deregulation of electricity markets increases the financial risk faced by retailers who procure electric energy on the spot market to meet their customers’ electricity demand. To hedge against this exposure, retailers often hold a portfolio of electricity derivative contracts. In this paper, we propose a multistage stochastic mean-variance optimisation model for the management of such a portfolio. To reduce computational complexity, we perform two approximations: stage-aggregation and linear decision rules (LDR). The LDR approach consists of restricting the set of decision rules to those affine in the history of the random parameters. When applied to mean-variance optimisation models, it leads to convex quadratic programs. Since their size grows typically only polynomially with the number of periods, they can be efficiently solved. Our numerical experiments illustrate the value of adaptivity inherent in the LDR method and its potential for enabling scalability to problems with many periods.OR in energy, electricity portfolio management, stochastic programming, risk management, linear decision rules