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Network design for reverse logistics

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  • Srivastava, Samir K.
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    Abstract

    Collection and recycling of product returns is gaining interest in business and research worldwide. Growing green concerns and advancement of green supply chain management (GrSCM) concepts and practices make it all the more relevant. Inputs from literature and informal interviews with 84 stakeholders are used to develop a conceptual model for simultaneous location-allocation of facilities for a cost effective and efficient reverse logistics (RL) network. We cover costs and operations across a wide domain and our proposed RL network consists of collection centers and two types of rework facilities set up by original equipment manufacturers (OEMs) or their consortia for a few categories of product returns under various strategic, operational and customer service constraints in the Indian context. In this paper, we provide an integrated holistic conceptual framework that combines descriptive modeling with optimization techniques at the methodological level. We also provide detailed solutions for network configuration and design at the topological level, by carrying out experimentation with our conceptual model. Our findings provide useful insights to various stakeholders and suggest avenues for further research.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 36 (2008)
    Issue (Month): 4 (August)
    Pages: 535-548

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    Handle: RePEc:eee:jomega:v:36:y:2008:i:4:p:535-548

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    Related research

    Keywords: Reverse logistics Product returns Location-allocation of facilities Value recovery Green supply chain management India;

    References

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    1. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.
    2. Bloemhof-Ruwaard, Jacqueline M. & van Beek, Paul & Hordijk, Leen & Van Wassenhove, Luk N., 1995. "Interactions between operational research and environmental management," European Journal of Operational Research, Elsevier, vol. 85(2), pages 229-243, September.
    3. Hu, Tung-Lai & Sheu, Jiuh-Biing & Huang, Kuan-Hsiung, 2002. "A reverse logistics cost minimization model for the treatment of hazardous wastes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(6), pages 457-473, November.
    4. Min, Hokey & Jeung Ko, Hyun & Seong Ko, Chang, 2006. "A genetic algorithm approach to developing the multi-echelon reverse logistics network for product returns," Omega, Elsevier, vol. 34(1), pages 56-69, January.
    5. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    6. Jayaraman, Vaidyanathan & Patterson, Raymond A. & Rolland, Erik, 2003. "The design of reverse distribution networks: Models and solution procedures," European Journal of Operational Research, Elsevier, vol. 150(1), pages 128-149, October.
    7. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    8. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    9. Amini, M. Mehdi & Retzlaff-Roberts, Donna & Bienstock, Carol C., 2005. "Designing a reverse logistics operation for short cycle time repair services," International Journal of Production Economics, Elsevier, vol. 96(3), pages 367-380, June.
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    Citations

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    Cited by:
    1. Francas, David & Minner, Stefan, 2009. "Manufacturing network configuration in supply chains with product recovery," Omega, Elsevier, vol. 37(4), pages 757-769, August.
    2. Bell, John E. & Griffis, Stanley E. & Cunningham III, William A. & Eberlan, Jon A., 2011. "Location optimization of strategic alert sites for homeland defense," Omega, Elsevier, vol. 39(2), pages 151-158, April.
    3. Ruiz-Benítez, Rocío & Ketzenberg, Michael & van der Laan, Erwin A., 2014. "Managing consumer returns in high clockspeed industries," Omega, Elsevier, vol. 43(C), pages 54-63.
    4. White, Leroy & Smith, Honora & Currie, Christine, 2011. "OR in developing countries: A review," European Journal of Operational Research, Elsevier, vol. 208(1), pages 1-11, January.
    5. Chaabane, A. & Ramudhin, A. & Paquet, M., 2012. "Design of sustainable supply chains under the emission trading scheme," International Journal of Production Economics, Elsevier, vol. 135(1), pages 37-49.
    6. Schweiger, Katharina & Sahamie, Ramin, 2013. "A hybrid Tabu Search approach for the design of a paper recycling network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 98-119.
    7. Alumur, Sibel A. & Nickel, Stefan & Saldanha-da-Gama, Francisco & Verter, Vedat, 2012. "Multi-period reverse logistics network design," European Journal of Operational Research, Elsevier, vol. 220(1), pages 67-78.
    8. Eskandarpour, Majid & Zegordi, Seyed Hessameddin & Nikbakhsh, Ehsan, 2013. "A parallel variable neighborhood search for the multi-objective sustainable post-sales network design problem," International Journal of Production Economics, Elsevier, vol. 145(1), pages 117-131.
    9. Devika, K. & Jafarian, A. & Nourbakhsh, V., 2014. "Designing a sustainable closed-loop supply chain network based on triple bottom line approach: A comparison of metaheuristics hybridization techniques," European Journal of Operational Research, Elsevier, vol. 235(3), pages 594-615.
    10. Hassini, Elkafi & Surti, Chirag & Searcy, Cory, 2012. "A literature review and a case study of sustainable supply chains with a focus on metrics," International Journal of Production Economics, Elsevier, vol. 140(1), pages 69-82.
    11. Toso, Eli Angela V. & Alem, Douglas, 2014. "Effective location models for sorting recyclables in public management," European Journal of Operational Research, Elsevier, vol. 234(3), pages 839-860.
    12. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    13. Koh, S.C.L. & Gunasekaran, A. & Tseng, C.S., 2012. "Cross-tier ripple and indirect effects of directives WEEE and RoHS on greening a supply chain," International Journal of Production Economics, Elsevier, vol. 140(1), pages 305-317.
    14. Chung, Sung H. & Weaver, Robert D. & Friesz, Terry L., 2013. "Strategic response to pollution taxes in supply chain networks: Dynamic, spatial, and organizational dimensions," European Journal of Operational Research, Elsevier, vol. 231(2), pages 314-327.
    15. Schulz, Tobias & Voigt, Guido, 2014. "A flexibly structured lot sizing heuristic for a static remanufacturing system," Omega, Elsevier, vol. 44(C), pages 21-31.
    16. Overholts II, Dale L. & Bell, John E. & Arostegui, Marvin A., 2009. "A location analysis approach for military maintenance scheduling with geographically dispersed service areas," Omega, Elsevier, vol. 37(4), pages 838-852, August.
    17. Costa, Alysson M. & França, Paulo M. & Lyra Filho, Christiano, 2011. "Two-level network design with intermediate facilities: An application to electrical distribution systems," Omega, Elsevier, vol. 39(1), pages 3-13, January.

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