Joint Pricing and Inventory Routing Modeling in a Two Echelon Closed Supply Chain

Subject Areas : Labor and Demographic Economics

mohamad mohamadnejad ¹ , Isa nakhaei kama abadi ² , Ramin Sadeghian ³ , Fardin Ahmadi zar ⁴

1 - دانشجوی دکتری مهندسی صنایع، دانشگاه پیام نور
2 - استاد گروه مهندسی صنایع دانشگاه کردستان
3 - استادیار مهندسی صنایع دانشگاه پیام نور، تهران
4 - دانشیار گروه مهندسی صنایع دانشگاه کردستان

Received: 2017-06-07 Accepted : 2017-06-07 Published : 2017-05-22

Keywords: Genetic algorithm, Particle Swarm Optimization Algorithm, C13, JEL Classification: Z14, G35. Keyword: Closed-Loop Supply Chain, .Pricing, Heterogeneous Fleet of Vehicles, Simultaneous Pick-up and Delivery,

Abstract :

Abstract This paper studies the pricing issue in a multi-period and multi-product closed-loop supply chain with price-dependent demands. The aim is to assign a location for the collection and disassemble center, vehicle routing, and material ordering in order to maximize the profit.  In the study, a non-linear mathematical model is presented for small scale problems. Due to the NP-hardness of the problem, two met heuristics, genetic algorithm and particle swarm optimization algorithm, are applied to solve medium and large scale problems. The algorithms are validated by comparing their results with those of the mathematical model. Finally, the performance comparison of the two met heuristics through statistical analysis is demonstrated that the particle swarm optimization algorithm performance outperforms the genetic algorithm.

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