A Collection-Distribution Center Location and Allocation Optimization Model in Closed-Loop Supply Chain for Chinese Beer Industry

Recycling waste products is an environmental-friendly activity that can result in manufacturing cost saving and economic efficiency improving. In the beer industry, recycling bottles can reduce manufacturing cost and the industry’s carbon footprint. This paper presents a model for a collection-distribution center location and allocation problem in a closed-loop supply chain for the beer industry under a fuzzy random environment, in which the objectives are to minimize total costs and transportation pollution. Both random and fuzzy uncertainties, for which return rate and disposal rate are considered fuzzy random variables, are jointly handled in this paper to ensure a more practical problem solution. A heuristic algorithm based on priority-based global-local-neighbor particle swarm optimization (pb-glnPSO) is applied to ensure reliable solutions for this NP-hard problem. A beer company case study is given to illustrate the application of the proposed model and to demonstrate the priority-based global-local-neighbor particle swarm optimization.

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