Closed Loop Supply Chain with Production Planning

We present a Closed Loop Supply Chain (CLSC) model that supports a production planning (PP) process. CLSC model is based on CLSC framework model which consists of four main centers: collection, recovery center, distribution and disposal centers. These logistics parts support main production lines. Some quantity of the products is recovered and the factories don’t need to spend money for production. This is a simple cost reduction process. In CLSC literature one can hardly meet the models of production planning processes supported by CLSC. Important problem with that models is the computational complexity when one wants to prepare production plans for more than one time period. This is connected with a number of the numerical variables of the CLSC and PP models which are usually Integer Programming models solved with Branch & Bound algorithms. We present some modifications of the widely known and used constraints in the CLSC models to optimize solving process. All the experiments were conducted with the CPLEX solver.