Reverse Logistics Network Structures and Design

Logistics network design is commonly recognized as a strategic supply chain issue of prime importance. The location of production facilities, storage concepts, and transportation strategies are major determinants of supply chain performance. This chapter considers logistics network design for the particular case of closed-loop supply chains. We highlight key issues that companies are facing when deciding upon the logistics implementation of a product recovery initiative. In particular, we point out differences and analogies with logistics network design for traditional 'forward' supply chains. Moreover, we discuss the strategic fit between specific supply chain contexts and logistics network structures. Conclusions are supported by a quantitative analysis.