Coordinated scheduling of production and logistics for large-scale closed-loop manufacturing using Benders decomposition optimization

This paper studies coordinated scheduling of production and logistics for a large-scale closed-loop manufacturing system by integrating its manufacturing and recycling process. In addition to the forward manufacturing process, different recycling units in reverse recycling process are also studied. A decentralized network is designed to formulate the coordinated scheduling problem as a mixed integer programming model with both binary and integer variables. As the problem for closed-loop manufacturing is large-scale and computational-consuming in nature, the model is divided into integer variable sub-models and complex binary variable sub-models for preprocessing and reprocessing respectively. An iterative solution approach by Benders decomposition is developed to accelerate the solving efficiency in large-scale case by updating custom constraints. A case study is conducted to investigate the managerial implications of the decentralized network for the closed-loop manufacturing system. Computational experiments demonstrate the validity and efficiency of the proposed iterative solution approach for the large-scale scenarios.