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Open AccessArticle

Distribution-Free Stochastic Closed-Loop Supply Chain Design Problem with Financial Management

by Dapeng Yang 1, Daqing Wu 2,* and Luyan Shi 3
School of Economics and Management, Tongji University, Shanghai 200092, China
College of Economics and Management, Shanghai Ocean University, Shanghai 201306, China
Business School, Hohai University, Nanjing 211100, China
Author to whom correspondence should be addressed.
Sustainability 2019, 11(5), 1236;
Received: 30 January 2019 / Revised: 15 February 2019 / Accepted: 15 February 2019 / Published: 26 February 2019
(This article belongs to the Special Issue Internet Finance, Green Finance and Sustainability)
Financial flow is an important part of supply chain management (SCM) and increasingly playing a crucial role as the amount of global trade increases. Reasonable and scientific financial operation is necessary in closed-loop supply chain management, especially when customer demand is uncertain. However, financial flow, which may lead to an increase in effectiveness, has rarely been considered in the literature. In this paper, we present a closed-loop supply chain design with financial management problem, which is tackled as a stochastic programming model with ambiguity demand set. The main contributions of this work include: (i) A joint chance constrained programming model is proposed to maximize the total profit, and (ii) financial flow and uncertain demand are both taken into consideration. According to the characteristic of the problem, we chose four approaches, namely sample average approximation (SAA), enhanced sample average approximation (ESAA), Markov approximation (MA), and mixed integer second-order conic program (MI-SOCP). Computational experiments were conducted to compare the adopted methods, and 10,000 scenarios were generated to examine the reliability of the methods. Numerical results revealed that the Markov approximation approach can achieve more reliable solutions. View Full-Text
Keywords: closed-loop problem; uncertain demand; financial management; ambiguity set closed-loop problem; uncertain demand; financial management; ambiguity set
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Yang, D.; Wu, D.; Shi, L. Distribution-Free Stochastic Closed-Loop Supply Chain Design Problem with Financial Management. Sustainability 2019, 11, 1236.

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