Abstract
In this paper, an MILP formulation is proposed for the design of a reverse logistics network based on a warehouse location–allocation model, which optimizes, simultaneously, the forward and reverse networks. A single product model with unlimited capacity is first defined. Subsequently, the model is extended to a multi-product capacitated recovery network model, where capacity limitations and a multi-product system can be considered. The proposed model is compared to published work in the field, where different model assumptions have been proposed. Two cases are described so as to gain a better insight into the model and allow a comparative analysis.
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Appendix: Performance enhancer
Appendix: Performance enhancer
Consider α p, α w and α r to be, respectively, the smallest integer number of factories, warehouses and of disassembly centres, at their largest capacity, that must be opened in order to satisfy all the demand and return. The lower bound constraints for factories, warehouses and disassembly centres are, respectively, given by constraints (A.1) (A.2) and (A.3).
The upper bound constraints introduced in DeM extended are defined as follows:
The β value was replaced by the lowest possible value that allowed a feasible upper bound constraint.
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Salema, M., Póvoa, A. & Novais, A. A warehouse-based design model for reverse logistics. J Oper Res Soc 57, 615–629 (2006). https://doi.org/10.1057/palgrave.jors.2602035
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DOI: https://doi.org/10.1057/palgrave.jors.2602035