Genetic Local Search for Facility Location-Allocation Problem in Closed-Loop Supply Chains

The complexity of closed-loop supply chain makes the operation of logistics system more dependent on logistics network, so the facility location-allocation problem in closed-loop supply chains has been the most important problem in the supply chain management with reverse logistics. The Facility location-allocation problem in designing closed-loop supply chains is analyzed in this paper at first, and then the mathematical model is formulated. In the model the logistics network is shared by forward logistics and reverse logistics, and the demanded quantities is considered as stochastic variable. The objective of the model is to optimize the total cost of the closed-loop supply chain. Because the formulated model is NP-hard, genetic local search algorithm is designed to solve the problem. The local search is used in the algorithm to improve the search effectiveness. Simulations based on numerical examples show that the proposed mathematical model and the algorithm are effective.