Robust optimisation for ripple effect on reverse supply chain: an industrial case study

Abstract

This study examines the ripple effect on the system performance of the reverse supply chain (RSC) network and introduces a robust optimisation model for designing strong RSC networks to cope with the uncertainties caused by the ripple effect. In this manner, to the best knowledge of authors, a robust optimisation model for RSC design against the ripple effect in the context of green principles is formulated for the first time. That being the case, the study aims to provide remarkable managerial insights thanks to the developed robust optimisation model by adopting a proactive strategy before a long-term disruption occurs in the network. To this end, the robust optimisation model is applied to an industrial case study from an enterprise disassembling the household appliance. The scope of the case study is limited to the enterprise's recycling activities in the northern region of Turkey which is a potential landslide site due to the heavy rainfall. Computational experiments are performed through a set of scenarios regarding the different weight uncertainty values to reveal the changes in objective function value and decision variables. Based on the results, whilst the computationally tractable robust solutions are obtained; the price of robustness is higher than expected to protect the constraints against violation when the probability of constraint violation equals 0.01.

Keywords:

• reverse supply chain
• ripple effect
• robust optimisation

Disclosure statement

No potential conflict of interest was reported by the author(s).

ORCID

Gökhan Özçelik http://orcid.org/0000-0001-5314-8576

Ömer Faruk Yılmaz http://orcid.org/0000-0002-6202-4011

Fatma Betül Yeni http://orcid.org/0000-0002-6544-7976