MATHEMATICAL MODELING FOR OPTIMAL FACILITY LOCATION AND PRODUCT FLOW IN A MULTI-LAYER MULTI-PRODUCT REVERSE SUPPLY CHAIN

Author(s):
Hoda Mahmoudi1, Hamed Fazlollahtabar2,3

Author Affiliation:
1Mazandaran University of Science and Technology
2Iran University of Science and Technology
3Niroogostar Energy Optimization Research Group

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Abstract

With the increased environmental concerns and stringent environmental laws, reverse logistics has received growing attention throughout this decade. This paper presents a mathematical programming model which minimizes the total cost of reverse supply chain including transportation costs among centers and also sites launch, operation parts, maintenance and remanufacturing costs. The proposed model considers the design of a multi-layer, multi-product reverse supply chain that consists of returning, disassembly, processing, recycling, remanufacturing, materials and distribution centers. Reverse flow starts with the collection of the returned products. These products are first received at returning sites and then transported to other sites. Based on the proposed model, the optimal facility locations and the products and parts flows in the reverse supply chain can be determined. Finally, a numerical example is illustrated to achieve a better vision into the proposed model.

KEYWORDS:
Reverse supply chain, Mathematical modelling, Optimal flow, Facility location