Simultaneous Pickup-and-Delivery Production-Routing Problem in Closed-Loop Supply Chain with Remanufacturing and Disassembly Consideration

In a context of Closed-Loop Supply Chain, Production-Routing Problem with Pickup and Delivery is presented in this paper. In its basic form, Production-Routing Problem (PRP) attempts to solve jointly Dynamical Lot-Sizing and Inventory-Routing Problems. In this paper, a novel PRP model seeking to minimize the total cost of manufacturing, remanufacturing, disassembly, inventory, and routing by taking into account the remanufacturing and disassembly processes of End-of-Life returned products is provided. Managerial insights drawn are (i) integrating all decisions considered in our work can lead to savings up to 43.7\% compared to the non-integrated ones, (ii) choosing the right value of the remanufacturing rate can lead to a substantial decrease in total cost, and (iii) increasing unit disassembly and remanufacturing costs turn out to be detrimental to the total cost. Also, novel hybrid heuristics based on Two-Phase Iterative and Relax-and-Fix heuristics were developed and outperform Branch-and-Cut algorithm for large-size instances with a small vehicle capacity