Reverse logistics modeling considering environmental and manufacturing costs: A case study of battery recycling in Indonesia

Abstract

This article models a reverse logistics network for battery recycling with consideration of environmental and manufacturing costs. The model is developed for a reverse flow multi-echelon supply chain, from end customers to the remanufacturing process. Linear programming is used to formulate mathematical models and LINGO® is applied to solve the problem of determining optimal orders for and sales of recycled batteries, lead alloy and plastics, as well as the optimal level of safety stock (service level) for the recycling centers along the reverse logistics network. The number of battery orders from unused battery collectors, and the sales of lead alloy and plastics to the remanufacturing process considering transportation, environmental cost, disassembly cost and inventory costs, are found optimally in different periods. The study also indicates that there is a correlation between the associated costs and inventory decisions and total profit in recycling centers.