Robust optimization model for closed-loop supply chain planning with collected material quality uncertainty

• Proposes a proportion-based robust optimization model for CLSCs that explicitly incorporates material quality uncertainty. • Demonstrates through computational experiments that proportion-based models reduce shortages and stabilize performance compared to quantity-based models. • Provides managerial insights on sourcing strategies under independent vs. correlated uncertainties, highlighting conditions where each model is preferable. This study develops a robust optimization framework for closed-loop supply chain (CLSC) planning that explicitly accounts for uncertainty in the quality of recycled and remanufactured inputs. While such materials are critical for sustainability, their variable quality poses risks to production feasibility and supply reliability. To address this challenge, we propose an ordering-proportion-based robust model that distributes uncertainty across sourcing proportions and leverages the Bertsimas–Sim budget of uncertainty to balance conservatism and flexibility. A reformulation ensures tractability and preserves robust feasibility. Computational experiments demonstrate that the proposed model reduces shortages and stabilizes performance under independently realized uncertainties, while quantity-based robust models are more effective when uncertainties are correlated. Additional scalability tests confirm that the model remains computationally tractable for medium-sized networks. The findings highlight practical implications for managers, showing how proportion-based sourcing improves resilience, supports reliable demand fulfillment, and strengthens sustainability in CLSCs facing quality risks.

Authors

Institutions

Publication Details

Journal
Operations Research Perspectives
Published
2025-11-21
DOI
https://doi.org/10.1016/j.orp.2025.100368
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Robust optimization model for closed-loop supply chain planning with collected material quality uncertainty

Joonrak Kim, Seung‐Hoon Lee
Operations Research Perspectives
Sustainable Supply Chain Management
article

Robust optimization model for closed-loop supply chain planning with collected material quality uncertainty

Joonrak Kim, Seung‐Hoon Lee
article en

Abstract

• Proposes a proportion-based robust optimization model for CLSCs that explicitly incorporates material quality uncertainty. • Demonstrates through computational experiments that proportion-based models reduce shortages and stabilize performance compared to quantity-based models. • Provides managerial insights on sourcing strategies under independent vs. correlated uncertainties, highlighting conditions where each model is preferable. This study develops a robust optimization framework for closed-loop supply chain (CLSC) planning that explicitly accounts for uncertainty in the quality of recycled and remanufactured inputs. While such materials are critical for sustainability, their variable quality poses risks to production feasibility and supply reliability. To address this challenge, we propose an ordering-proportion-based robust model that distributes uncertainty across sourcing proportions and leverages the Bertsimas–Sim budget of uncertainty to balance conservatism and flexibility. A reformulation ensures tractability and preserves robust feasibility. Computational experiments demonstrate that the proposed model reduces shortages and stabilizes performance under independently realized uncertainties, while quantity-based robust models are more effective when uncertainties are correlated. Additional scalability tests confirm that the model remains computationally tractable for medium-sized networks. The findings highlight practical implications for managers, showing how proportion-based sourcing improves resilience, supports reliable demand fulfillment, and strengthens sustainability in CLSCs facing quality risks.

Operations Research PerspectivesVol. 15
SK Group (United States) (US), Dong-A University (KR)
Openalex Percentile: Top 49%
Sustainable Supply Chain Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Robust optimization model for closed-loop supply chain planning with collected material quality uncertainty — Joonrak Kim, Seung‐Hoon Lee · Operations Research Perspectives (2025) | TGRS Research Map | TGRS