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Korean Institute of Industrial Engineers (대한산업공학회)
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A Location-Routing Problem for Logistics Network Integrating Forward and Reverse Flow

역물류를 고려한 통합물류망에서의 입지：경로문제

  • Na, Ho-Young (Department of Mathematics, Korea Military Academy) ;
  • Lee, Sang-Heon (Department of Operations Research, Korea National Defense University)
  • Received : 2009.01.08
  • Accepted : 2009.05.04
  • Published : 2009.06.01
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Abstract

An effective management for reverse flows of products such as reuse, repair and disposal, has become an important issue for every aspect of business. In this paper, we study the Location-Routing Problem (LRP) in the multi-stage closed-loop supply chain network. The closed-loop supply chain in this study integrated both forward and reverse flows. In forward flow, a factory, Distribution Center (DC) and retailer are considered as usual. Additionally in reverse flow, we consider the Central Returns collection Center (CRC) and disposal facility. We propose a mixed integer programming model for the design of closed-loop supply chain integrating both forward and reverse flows. Since the LRP belongs to an NP-hard problem, we suggest a heuristic algorithm based on genetic algorithm. For some test problems, we found the optimal locations and routes by changing the numbers of retailers and facility candidates. Furthermore, we compare the efficiencies between open-loop and closed-loop supply chain networks. The results show that the closed-loop design is better than the open one in respect to the total routing distance and cost. This phenomenon enlarges the cut down effect on cost as an experimental space become larger.

Keywords

References

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