Mathematical Modeling for Optimal Facility Location and Product Flow in A Multi-layer Multi-product Reverse Supply Chain

Author(s)

Hoda Mahmoudi1, Hamed Fazlollahtabar23

Author affiliation

1Mazandaran University of Science and Technology, 2Iran University of Science and Technology, 3Niroogostar Energy Optimization Research Group

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