Modelling and optimisation of a product recovery network

An appropriate logistics network is an important element of the infrastructure of any product recovery company. Small and medium enterprises (SMEs) constitute a major fraction of the product recovery industry with a different business objective and scale of operation from those of original equipment manufacturers. This paper addresses the network design issues for SMEs involved in product recovery activities. A mathematical formulation is presented in an SME context and a subsequent simulation model is developed. A genetic algorithm approach is presented for optimising the network for a single product scenario

Designing a Reverse Logistics Network for End-of-Life Vehicles Recovery

The environmental factors are receiving increasing attention in different life cycle stages of products. When a product reaches its End-Of-Life (EOL) stage, the management of its recovery process is affected by the environmental and also economical factors. Selecting efficient methods for the collection and recovery of EOL products has become an important issue. The European Union Directive 2000/53/EC extends the responsibility of the vehicle manufacturers to the postconsumer stage of the vehicle. In order to fulfill the requirements of this Directive and also efficient management of the whole recovery process, the conceptual framework of a reverse logistics network is presented. The distribution of new vehicles in an area and also collecting the End-of-Life Vehicles (ELVs) and their recovery are considered jointly. It is assumed that the new vehicles distributors are also responsible for collecting the ELVs. Then a mathematical model is developed which minimizes the costs of setting up the network and also the relevant transportation costs. Because of the complexity of the model, a solution methodology based on the genetic algorithm is designed which enables achieving good quality solutions in a reasonable algorithm run time

A Review on Remanufacturing Reverse Logistics Network Design and Model Optimization

Remanufacturing has gained great recognition in recent years due to its economic and environmental benefits and effectiveness in the value retention of waste products. Many studies on reverse logistics have considered remanufacturing as a key node for network optimization, but few literature reviews have explicitly mentioned remanufacturing as a main feature in their analysis. The aim of this review is to bridge this gap. In total, 125 papers on remanufacturing reverse logistics network design have been reviewed and conclusions have been drawn from four aspects: (1) in terms of network structure, the functional nodes of new hybrid facilities and the network structure combined with the remanufacturing technologies of products are the key points in the research. (2) In the mathematical model, the multi-objective function considered from different aspects, the uncertainty of recovery time and recovery channel in addition to quantity and quality, and the selection of appropriate algorithms are worth studying. (3) While considering product types, the research of a reverse logistics network of some products is urgently needed but inadequate, such as medical and furniture products. (4) As for cutting-edge technologies, the application of new technologies, such as intelligent remanufacturing technology and big data, will have a huge impact on the remanufacturing of a reverse logistics network and needs to be considered in our research

Facility location decisions within integrated forward/reverse logistics under uncertainty

In this paper, a stochastic mixed integer linear programming (SMILP) model is proposed to optimize the location and size of facilities and service centres in integrated forward and reverse streams under uncertainty. The objective of the model is to minimize establishment, transportation and inventory management costs and simultaneously maximize customer satisfaction with sustainable perspective. The model incorporates different elements and features of distribution networks including inventory management, transportation and establishment of new facilities as well as existing centres. The presented model is the streamlined approach for multi-objective, multi-period, multi-commodity distribution system, and it is supported by a real case study in automobile after sales network. Genetic algorithm is implemented to solve the model in reasonable time. The performance of the model and the effects of uncertainty on provided solution are studied under different cases. Competitive result of the stochastic model compared to deterministic model ensures that the proposed approach is valid to be applied for decision making under uncertainty.Scopu

A proposed mathematical model for closed-loop network configuration based on product life cycle

Products may be returned over their life cycle. Industrial experiences show that there are three main return–recovery pairs. Commercial returns are repaired. End-of-use returns often are remanufactured. In addition, end-of-life returns are recycled. However, up to now, no optimization model is proposed for closed-loop configuration based on three return–recovery pairs. The repaired and remanufactured products can be sold in the same or secondary market. In this paper, we design and configure a general closed-loop supply chain network based on product life cycle. The network includes a manufacturer, collection, repair, disassembly, recycling, and disposal sites. The returned products are collected in a collection site. Commercial returns go to a repair site. End-of-use and end-of-life returns are disassembled. Then, end-of-life returns are recycled. The manufacturer uses recycled and end-of-use parts and new parts to manufacture new products. The new parts are purchased from external suppliers. A mixed-integer linear programming model is proposed to configure the network. The objective is to maximize profit by determining quantity of parts and products in the network. We also extend the model for the condition that the remanufactured products are sent to the secondary market. The mathematical models are validated through computational testing and sensitivity analysis

Selection of return channels and recovery options for used products

Due to legal, economic and socio-environmental factors, reverse logistics practices and extended producer responsibility have developed into a necessity in many countries. The end results and expectations may differ, but the motivation remains the same. Two significant components in a reverse logistics system -product recovery options and return channels - are the focus of this thesis. The two main issues examined are allocation of the returned products to recovery options, and selection of the collection methods for product returns. The initial segment of this thesis involves the formulation of a linear programming model to determine the optimal allocation of returned products differing in quality to specific recovery options. This model paves the way for a study on the effects of flexibility on product recovery allocation. A computational example utilising experimental data was presented to demonstrate the viability of the proposed model. The results revealed that in comparison to a fixed match between product qualities and recovery options, the product recovery operation appeared to be more profitable with a flexible allocation. The second segment of this thesis addresses the methods employed for the initial collection of returned products. A mixed integer nonlinear programming model was developed to facilitate the selection of optimal collection methods for these products. This integrated model takes three different initial collection methods into consideration. The model is used to solve an illustrative example optimally. However, as the complexity of the issue renders this process ineffective in the face of larger problems, the Lagrangian relaxation method was proposed to generate feasible solutions within reasonable computational times. This method was put to the test and the results were found to be encouraging