A model for design of a reverse logistics network under extended producer responsibility

Abstract

The paper develops a mixed integer linear programming model for capacitated facility location which allows the optimal design of a reverse logistics network and illustrates its application in the case of out-of-use tires. These tires are generated in service networks and garages, as in many large cities, and their use includes the possible production of raw materials derived from rubber and the use as fuel for certain industries such as cement. Optimal flows are generated, configuration of collection and recycling facilities is determined, and estimation of the monetary transfers necessary for the feasible operation of the system is estimated. The model must meet recycling targets and minimize the cost of fines in case of infeasibility, through relaxation of constraints.