A MULTI-PRODUCT AND MULTI-PERIOD FACILITY LOCATION MODEL FOR REVERSE LOGISTICS

Reverse logistics has become an important entity in the world economy. Businesses increasingly have to cope with product returns, mandated environmental regulations and increasing costs associated with product disposal. This study presents a cost-minimization model for a multi-time-step, multi-type product waste reverse logistics system. The facility location is a central issue of the logistics networks. In this article we are interested in optimizing of the sites facility location for a reverse logistics network for product end of life. Specifically, we present a Mixed Linear Program model for the strategic problem of collection sites facility location, cannibalization and recycling. This model allows determining to open or to close the sites previously in the reverse logistics network. All of these decisions are to minimize the costs of end of life product returns at various time periods considered in the planning. To solve the mathematical program, we have used the evaluation process and separation implemented in CPLEX commercial solver.