Stochastic Lot-Sizing Schedule of Production and Remanufacturing in Closed Loop Supply Chain for Construction Waste Recycling
This study addresses a stochastic multi-product lot-sizing (re)manufacturing problem in construction enterprise
employing a closed-loop supply chain strategy. The finished products required at the construction sites are provided by
production resource using virgin material and remanufacturing resource using recyclable material. Uncertain return and
demand lead to unequal information on each CLSC links. The mismatch of demand and supply result in high inventory cost
which directly affect the difficulty of establishing anoptimallot-sizing production schedule. For this NP-hard problem, we
proposed a nonlinear model formula that is approximated by sample average approximation (SAA) method to transform into
a deterministic problem. The experiments demonstrated the proposed method can generate the optimal configuration,thereby
reducing the total cost.
Keywords - Construction waste recycling，Stochastic programming, Multi-product multi-period lot-sizing schedule
optimization，Closed-loop supply chain，SAA，Uncertainty.