Research Article Open Access

An NPV Optimization Model for Closed-Loop Supply Chain Network Design and Planning

Al-Ashhab Mohamed Sayed1 and Nahid Afia1
  • 1 Ain-Shams University, Egypt

Abstract

As the importance of forward-reverse logistics increases, attention will be focused on parameters which affect Net Present Value (NPV) of the whole system, aiming at considering the time value of money in planning. In this research, an NPV optimization model for multi-period multi-product closed-loop supply chain network design and planning is developed to maximize the total NPV. The effect of interest rates on profit and performance, the effect of the maximum return ratio on the overall NPV of the system and the effect of interest rate change on the network configuration are studied.

American Journal of Engineering and Applied Sciences
Volume 10 No. 1, 2017, 114-125

DOI: https://doi.org/10.3844/ajeassp.2017.114.125

Submitted On: 19 July 2016 Published On: 18 February 2017

How to Cite: Sayed, A. M. & Afia, N. (2017). An NPV Optimization Model for Closed-Loop Supply Chain Network Design and Planning. American Journal of Engineering and Applied Sciences, 10(1), 114-125. https://doi.org/10.3844/ajeassp.2017.114.125

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Keywords

  • Supply Chain
  • Location-Allocation
  • Forward-Reverse Logistics
  • MILP
  • CLSC
  • NPV