American Journal of Engineering and Applied Sciences

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

Al-Ashhab Mohamed Sayed and Nahid Afia

DOI : 10.3844/ajeassp.2017.114.125

American Journal of Engineering and Applied Sciences

Volume 10, Issue 1

Pages 114-125


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.


© 2017 Al-Ashhab Mohamed Sayed and Nahid Afia. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.