Mixed-Integer Linear Programming Approach for Life-Cycle Carpet Profit

This paper proposes an mixed-integer linear programming (MILP) model to accurately represent a product life-cycle design considering profit maximization. The model that takes into account the effects on the demand lev-el and a measure of the customer utility considering recycled raw materials and prices of the traditional and modular products. Demand functions for traditional and modular products are considered. Given the presence of bilinear terms in the formulation (for example due to the multiplication of product price for the demand), the multi-parametric disaggregation technique is used to obtain a line-ar model. The developed model is applied to a company that produces tradition-al carpets and it wants to manufacture carpets based on a new modular design where recycled materials must be incorporated. The objective of the company is to maximize the total profit taking into account the design specifications and the selling prices for traditional and modular carpets. In addition, the amount of square meters of traditional carpets must be determined and the take-back rate must be considered. The practical behavior of the formulation is analyzed through computational experiments exploring the analyzed case-study.Sociedad Argentina de Informática e Investigación Operativ

Mixed-Integer Linear Programming Approach for Life-Cycle Carpet Profit

This paper proposes an mixed-integer linear programming (MILP) model to accurately represent a product life-cycle design considering profit maximization. The model that takes into account the effects on the demand lev-el and a measure of the customer utility considering recycled raw materials and prices of the traditional and modular products. Demand functions for traditional and modular products are considered. Given the presence of bilinear terms in the formulation (for example due to the multiplication of product price for the demand), the multi-parametric disaggregation technique is used to obtain a line-ar model. The developed model is applied to a company that produces tradition-al carpets and it wants to manufacture carpets based on a new modular design where recycled materials must be incorporated. The objective of the company is to maximize the total profit taking into account the design specifications and the selling prices for traditional and modular carpets. In addition, the amount of square meters of traditional carpets must be determined and the take-back rate must be considered. The practical behavior of the formulation is analyzed through computational experiments exploring the analyzed case-study.Sociedad Argentina de Informática e Investigación Operativ

Mixed-Integer Linear Programming Approach for Life-Cycle Carpet Profit

This paper proposes an mixed-integer linear programming (MILP) model to accurately represent a product life-cycle design considering profit maximization. The model that takes into account the effects on the demand lev-el and a measure of the customer utility considering recycled raw materials and prices of the traditional and modular products. Demand functions for traditional and modular products are considered. Given the presence of bilinear terms in the formulation (for example due to the multiplication of product price for the demand), the multi-parametric disaggregation technique is used to obtain a line-ar model. The developed model is applied to a company that produces tradition-al carpets and it wants to manufacture carpets based on a new modular design where recycled materials must be incorporated. The objective of the company is to maximize the total profit taking into account the design specifications and the selling prices for traditional and modular carpets. In addition, the amount of square meters of traditional carpets must be determined and the take-back rate must be considered. The practical behavior of the formulation is analyzed through computational experiments exploring the analyzed case-study.Sociedad Argentina de Informática e Investigación Operativ

Mixed-integer linear programming approach for product design for life-cycle profit

The paper deals with the product design problem where the characteristics of new and remanufactured products must be determined. The objective of the problem is to maximize the total profit taking into account the design specifications and the selling prices for the new and remanufactured products. The amount of new and remanufactured products is to be determined and the take-back rate is considered. The problem representation leads to a mixed-integer nonlinear structure, which makes very hard to deal with the corresponding mathematical formulation. Nevertheless, the problem can be modeled as a mixed-integer linear formulation taking advantage of the high efficiency, both in terms of solution accuracy and computing time of the software tools (solvers) developed for mixed-integer linear programming (MILP). This is explored in this work and a MILP model able to accurately represent the life-cycle design while the profit is maximized is proposed. In particular, the model takes into account the effects on the demand level of specifications and prices of new and remanufactured products. The formulation deals with the representation of demands nonlinear functions (new and remanufactured products) and the existent bilinear terms are handled through piecewise linear approximation and multi-parametric disaggregation techniques. The practical behavior of the formulation is analyzed through computational experiments considering an example of a desktop computer. In addition, the performance of the formulation and the quality of the solution obtained are compared with the performance of a nonlinear approach.Fil: Zeballos, Luis Javier. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Mendez, Carlos Alberto. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Barbosa Povoa, Ana P.. Centre For Management Studies, Instituto Superior Técn; Portuga

Integrating decisions of product and closed-loop supply chain design under uncertain return flows

The shortage of natural resources, the need to take into account societal considerations, the emergence of new government regulations and the necessity to maintain and/or improve the economic benefit of the supply chain, have created a growing awareness on academia as well as industries towards the development of closed-loop supply chains (CLSCs), where explicitly products’ life-cycles are accounted for. Concentrating on the problems of the product and network design for a multi-product, multi-echelon and multi-period CLSC, in this work a two-stage stochastic mixed integer linear model incorporating uncertainty on the quality and quantity of the return flows is proposed. In addition, risk management related to critical uncertain parameters is performed, where a conditional value at risk (CVaR) concept is applied to supply chain profits. The formulation considers decisions associated with the network design and, simultaneously, with the products to manufacture (new and remanufactured) and their associated raw materials (new and recovered). A network superstructure is considered accounting for two types of customers (first and second markets), raw material suppliers, factories, distribution centers, customer demands, recovery centers, recycle centers, final disposal locations and re-distribution centers. Optimal solutions with high economic and environmental benefits are obtained where the advantages of using the proposed approach are shown. A case study from a European consumer goods company is explored.Fil: Zeballos, Luis Javier. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Mendez, Carlos Alberto. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Barbosa Povoa, Ana P.. Instituto Superior Tecnico; Portuga