IDEAS home Printed from https://ideas.repec.org/a/wly/jnddns/v2016y2016i1n3475369.html

A Location‐Inventory‐Routing Problem in Forward and Reverse Logistics Network Design

Author

Listed:
  • Qunli Yuchi
  • Zhengwen He
  • Zhen Yang
  • Nengmin Wang

Abstract

We study a new problem of location‐inventory‐routing in forward and reverse logistic (LIRP‐FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which new goods are produced and damaged goods are repaired by a manufacturer and then returned to the market to satisfy customers’ demands as new ones. Our objective is to minimize the total costs of manufacturing and remanufacturing goods, building DCs, shipping goods (new or recovered) between the manufacturer and opened DCs, and distributing new or recovered goods to customers and ordering and storage costs of goods. A nonlinear integer programming model is proposed to formulate the LIRP‐FRL. A new tabu search (NTS) algorithm is developed to achieve near optimal solution of the problem. Numerical experiments on the benchmark instances of a simplified version of the LIRP‐FRL, the capacitated location routing problem, and the randomly generated LIRP‐FRL instances demonstrate the effectiveness and efficiency of the proposed NTS algorithm in problem resolution.

Suggested Citation

  • Qunli Yuchi & Zhengwen He & Zhen Yang & Nengmin Wang, 2016. "A Location‐Inventory‐Routing Problem in Forward and Reverse Logistics Network Design," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2016(1).
    • Handle: RePEc:wly:jnddns:v:2016:y:2016:i:1:n:3475369
    DOI: 10.1155/2016/3475369
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2016/3475369
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2016/3475369?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ruud H. Teunter, 2001. "Economic ordering quantities for recoverable item inventory systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(6), pages 484-495, September.
    2. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hsieh, Chung-Chi & Lathifah, Artya, 2022. "Ordering and waste reuse decisions in a make-to-order system under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1290-1303.
    2. Felix T.S. Chan & Nan Li & S.H. Chung & Mozafar Saadat, 2017. "Management of sustainable manufacturing systems-a review on mathematical problems," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1210-1225, February.
    3. Lucas Dias Condeixa & Pierry Silva & Diego Moah & Brenda Farias & Adriana Leiras, 2022. "Evaluating cost impacts on reverse logistics using an Economic Order Quantity (EOQ) model with environmental and social considerations," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 921-940, September.
    4. Bimal Kumar Mawandiya & J. K. Jha & Jitesh J. Thakkar, 2020. "Optimal production-inventory policy for closed-loop supply chain with remanufacturing under random demand and return," Operational Research, Springer, vol. 20(3), pages 1623-1664, September.
    5. Sumit Maheshwari & Amrina Kausar & Ahmad Hasan & Chandra K. Jaggi, 2023. "Sustainable inventory model for a three-layer supply chain using optimal waste management," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 216-235, March.
    6. Adel A. Alamri, 2023. "A Sustainable Closed-Loop Supply Chains Inventory Model Considering Optimal Number of Remanufacturing Times," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    7. Kozlovskaya, Nadezhda & Pakhomova, Nadezhda & Richter, Knut, 2016. "A general production and recovery EOQ model with stationary demand and return rates," Discussion Papers 378, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    8. Teunter, Ruud H. & Vlachos, Dimitrios, 2002. "On the necessity of a disposal option for returned items that can be remanufactured," International Journal of Production Economics, Elsevier, vol. 75(3), pages 257-266, February.
    9. Richter, Knut & Dobos, Imre, 1999. "Analysis of the EOQ repair and waste disposal problem with integer setup numbers," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 463-467, March.
    10. 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.
    11. Bayindir, Z. Pelin & Erkip, Nesim & Gullu, Refik, 2003. "A model to evaluate inventory costs in a remanufacturing environment," International Journal of Production Economics, Elsevier, vol. 81(1), pages 597-607, January.
    12. Konstantaras, I. & Papachristos, S., 2007. "Optimal policy and holding cost stability regions in a periodic review inventory system with manufacturing and remanufacturing options," European Journal of Operational Research, Elsevier, vol. 178(2), pages 433-448, April.
    13. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    14. Nita H. Shah & Dushyantkumar G. Patel & Digeshkumar B. Shah, 2018. "EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand," Operational Research, Springer, vol. 18(2), pages 343-359, July.
    15. Mahadevan, B. & Pyke, David F. & Fleischmann, Moritz, 2003. "Periodic review, push inventory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 151(3), pages 536-551, December.
    16. Pinky Saxena & S. R. Singh & Isha Sangal, 2016. "A Multi Item Integrated Inventory Model with Reparability and Manufacturing of Fresh Products," Modern Applied Science, Canadian Center of Science and Education, vol. 10(7), pages 1-74, July.
    17. József Vörös, 2013. "Economic order and production quantity models without constraint on the percentage of defective items," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(4), pages 867-885, December.
    18. Choi, Dae-Won & Hwang, Hark & Koh, Shie-Gheun, 2007. "A generalized ordering and recovery policy for reusable items," European Journal of Operational Research, Elsevier, vol. 182(2), pages 764-774, October.
    19. Jaber, Mohamad Y. & Rosen, Marc A., 2008. "The economic order quantity repair and waste disposal model with entropy cost," European Journal of Operational Research, Elsevier, vol. 188(1), pages 109-120, July.
    20. Melis Teksan, Z. & Geunes, Joseph, 2016. "An EOQ model with price-dependent supply and demand," International Journal of Production Economics, Elsevier, vol. 178(C), pages 22-33.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jnddns:v:2016:y:2016:i:1:n:3475369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/3059 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.