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Proposing a robust designed facility location is one of the most effective ways to hedge against unexpected disruptions and failures in a transportation network system. This paper considers the combined facility location/network design problem with regard to transportation link disruptions and develops a mixed integer linear programming formulation to model it. With respect to the probability of link disruptions, the objective function of the model minimizes the total costs, including location costs, link construction costs and also the expected transportation costs. An efficient hybrid algorithm based on LP relaxation and variable neighbourhood search metaheuristic is developed in order to solve the mathematical model. Numerical results demonstrate that the proposed hybrid algorithm has suitable efficiency in terms of duration of solution time and determining excellent solution quality.

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Closed-loop supply chain network design is a critical issue due to its impact on both economic and environmental performances of the supply chain. In this paper, we address the problem of designing a multi-echelon, multi-product and capacitated closed-loop supply chain network. First, a mixed-integer linear programming formulation is developed to maximize the total profit. The main contribution of the proposed model is addressing two economic viability issues of closed-loop supply chain. The first issue is the collection of sufficient quantity of end-of-life products are assured by retailers against an acquisition price. The second issue is exploiting the benefits of colocation of forward facilities and reverse facilities. The presented model is solved by LINGO for some test problems. Computational results and sensitivity analysis are conducted to show the performance of the proposed model.