Taguchi method for analyzing the tactical planning model in a closed-loop supply chain considering remanufacturing option

Recent years, there has been a growing interest in reverse logistics, recycling, remanufacturing, and reusing due to the environmental concerns, economical issues, and legal obligations. Companies should take into account the recovery options such as recycling, remanufacturing, etc. while preparing their tactical plans. In this paper, a mixed integer linear programming model is proposed for tactical planning in a conceptual closed-loop supply chain with remanufacturing option. In the model, both forward and reverse flows are involved and two production alternatives are considered: either production of new products directly in manufacturing plants or bringing the returned products back to “as new condition” in the remanufacturing facilities. The proposed model attempts to optimize all of the consecutive stages in the closed-loop supply chain. Hence, the purpose of this research is to formulate a mathematical programming model to focus primarily on integrating remanufacturing as a recovery option into tactical planning process. The proposed model is applied to an illustrative case and solved by LINGO 9.0 optimization solver. In order to obtain the best objective function value that is targeted, the effects of the major factors regarding reverse flows and remanufacturing system are examined with the help of Taguchi experimental design technique at the end of the study. Analysis of variance, Taguchi's signal/noise ratios, analysis of means graphs and interaction graphs are provided by MINITAB 14 software and interpreted for the evaluation of experimental results and effects of related factors.