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Cost optimisation model in recycled waste reverse logistics system

Author

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  • Rupesh Kumar Pati
  • Prem Vrat
  • Pradeep Kumar

Abstract

This study presents a cost optimisation model for multi-variety (or multi-type) Recycled Waste Reverse Logistics System (RWRLS). A linear analytical model is formulated which minimises the total reverse logistics costs for multi-variety Recycled Waste Reverse Logistics System (RWRLS) subjected to constraints that take into account various internal and external factors affecting the RWRLS. Internal factors include unit inventory carrying costs, initial inventories, inventory capacities, unit manufacturing costs etc., whereas external factors include demand, distance, unit travelling costs, etc. between the stages for different varieties of recyclable waste. The model helps the organisation in developing an appropriate manufacturing strategy, e.g. units of various varieties of paper produced, by comparing the costs in different scenarios of demand. The described model may help in deciding about the transaction of goods/material/varieties taking place in the long term. The model may be helpful in making strategic inventory management decisions.

Suggested Citation

  • Rupesh Kumar Pati & Prem Vrat & Pradeep Kumar, 2004. "Cost optimisation model in recycled waste reverse logistics system," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 6(3/4), pages 245-261.
    • Handle: RePEc:ids:ijbpma:v:6:y:2004:i:3/4:p:245-261
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    Cited by:

    1. Pablo Becerra & Josefa Mula & Raquel Sanchis, 2022. "Sustainable Inventory Management in Supply Chains: Trends and Further Research," Sustainability, MDPI, vol. 14(5), pages 1-19, February.

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