An Experimental Research on Closed Loop Supply Chain Management with Internet of Things



Abstract. Closed loop supply chain (CLSC) optimization is integration of forward and reverse logistics activities. The importance of CLSC management is increasing by legal regulations, limited energy resources and environmental- financial problems that growing in recent years. However, reverse logistics part of the CLSC is a flow type which is more difficult to made predictions, planning and controls by reason contained uncertainties. This stage, Internet of Things system reduces related uncertainties by providing all the life information of the returned product and substantially attenuates planning of reverse flow activities. In this study, a CLSC is considered that meets demands of the sales&collection center both new and remanufactured product. Manufacturer has three options (refurbishing, disassembly and disposal) to assessing returned products. A mixed integer linear programming model is proposed for a single type of product is completely modular (automobile, computer, telephone, etc.). The model meets customer's products and components demands based period, maximizes profit consist of different sales revenues and total cost (total production, purchase, transportation and disposal costs) and determines how to evaluate all returned products. The proposed model has been verified with the aid of a numerical example by solving in GAMS software and its performance reviewed with experimental studies.

Keywords. Closed loop supply chain optimization, Internet of Things, Mixedinteger linear programming, Returned product management.

JEL. L80, L86, Q55.


Closed loop supply chain optimization; Internet of Things; Mixedinteger linear programming; Returned product management.

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