Industrial Engineering and Management Systems

Korean Institute of Industrial Engineers (대한산업공학회)
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Reverse Logistics Network Design with Incentive-Dependent Return

  • Asghari, Mohammad (Department of Industrial Engineering, Ferdowsi University of Mashhad) ;
  • Abrishami, Salman J. (Department of Industrial Engineering, University of Bojnourd) ;
  • Mahdavi, Faezeh (Department of Computer Engineering, Mazandaran University of Science and Technology)
  • Received : 2014.05.19
  • Accepted : 2014.10.30
  • Published : 2014.12.30
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Abstract

Reverse logistics network design issues have been popularly discussed in recent years. However, few papers in the past literature have been dedicated to incentive effect on return quantity of used products. The purpose of this study is to formulate a dynamic nonlinear programming model of reverse logistics network design with the aim of managing the used products allocation by coordinating the collection centers and recovery facilities to warrant economic efficiency. In the optimization model, a fuzzy approach is applied to interpret the relationship between the rate of return and the suggested incentives. Due to funding constraints in setting up the collection centers, this work considers these centers as multi-capacity levels, which can be opened or closed at different periods. In view of the fact that the problem is known as NP-hard, we propose a heuristic method based on tabu search procedure to solve the presented model. Finally, several dominance properties of optimal solutions are demonstrated in comparison with the results of a state-of-the-art commercial solver.

Keywords

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