SCant-Design: Closed Loop Supply Chain Design using Ant Colony Optimization

This paper proposes a new optimization methodology for supply chain design, using ant colony optimization. The objective of this methodology is to choose the facilities that will take part in a multi-product closed-loop supply chain, such as factories, warehouses and disassembly centers, in order to minimize the costs related to these facilities and those related to transportation costs, both in the forward and reverse chains. Considering that total production quantities for factories, expected cross-docking stocks for warehouses, and disassembly centers are determined by this methodology, it can be considered that it undertakes both strategic and tactical Supply Chain Management (SCM) problems at once. The developed algorithm, SCant-Design, is sufficiently general to solve any SCM configuration, with linear and nonlinear cost functions and constraints. The algorithm results were compared to a MILP approach for a particular case study and the obtained value for the cost function is very similar, although using less facilities.