Joint optimization of transportation and spare parts inventory policies in a reverse logistics network using OptQuest

Abstract

The aim of this study is the joint optimization of the transportation and spare parts inventory policies in a reverse logistics (RL) network designed for End of Life (EOL) television (TV) recyling. Besides recycling, Printed Circuit Boards (PCBs) recovered from EOL TVs are used to meet the spare PCB demand. In order to model this RL network with its disassembly, transportation and spare parts inventory related aspects, a discrete event simulation (DES) model has been developed in detail using Arena simulation software. Next, Arena OptQuest has been used to propose optimum number and size of trucks together with the optimum reorder (s) and order quantity (Q) levels for the spare PCBs based on the minimization of total cost which includes inventory holding, PCB recovery, new PCB acquisition, truck amortization and operating costs. Copyright © 2008 by ASME.