Industrial Engineering Journal ›› 2011, Vol. 14 ›› Issue (5): 47-51.

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Reverse Logistics Network Design with Recovery Rate Taken into Account

  

  1. School of Economics and Business Administration, Chongqing University,Chongqing 400044,China
  • Online:2011-10-31 Published:2011-11-11

Abstract: In this paper, the design problem of reverse logistics networks for end-of-life product recovery is addressed with both logistics network operating cost and end-of-life product recovery rate taken into account. This problem is formulated as a multiobjective integer programming. By this model, it determines the number of recycling centers, the capacity level of each recycling center, the location of these recycling centers, and the area covered by each center. Also, it determines whether price subsidies should be given. Through the analysis of an example, it shows that the proposed method can present how the cost changes when the recovery rate increases. With the proposed method, one can know how the recovery rate can further increase at different recovery rate levels.

Key words: reverse logistics, recovery rate, multiobjective optimization, end-of-life products 