Network design for reverse logistics and remanufacturing under uncertainty

Abstract

The reverse logistics network design is gaining in importance because of environmental concerns and issues related to social corporate responsibility To efficiently implement product recovery activity, a reverse logistics network is needed which can add value to the used products for the resale in new markets otherwise designing such a complex network would be unproductive. In this research, an approach to design a reverse logistics network for product recovery is presented. The approach consists of both mathematical and simulation models. It considers storing, reprocessing, remanufacturing facilities and new module suppliers in the network. The model is designed using MILP for products having modular structure and then solved for different scenarios of uncertainties using simulation. Furthermore, the impact of uncertainty on costs related to a multi-echelon reverse logistical system has been analyzed. © 2011 IEEE.