Model for Reverse Logistic Problem of Recycling under Stochastic Demand

Abstract

It has become obligatory for businesses to carry out recycling activities in the face of increasing environmental pollution and the danger of depletion of natural resources. The waste collection phase of the recycling process requires interactive transportation that uses a reverse logistics flow from customers to recycling facilities. Businesses need to create appropriate network structures to carry out these activities at minimum cost. This study has developed a model, based on reverse logistics, of collecting products from customers and sending them to warehouses and then to recycling facilities. The chance-constrained programming (CCP) approach was used to regulate the constraints involving stochastic demand in the model. Linearization was performed using the linear approximation method. The cost of transportation from Initial Collection Points (ICP) warehouses to recycling facilities is the most influential component on the objective function. This linearized model was solved by creating different scenarios by changing the standard deviation ratio, reliability level, and warehouse capacities within the scope of sensitivity analysis. In the sensitivity analysis, it was determined that the increase in confidence level and variance negatively affected the objective function. In addition, it has been concluded that the increase in demand has no effect on costs as long as the capacity of the facility is not exceeded.

A Data-Driven Approach for Improving Sustainable Product Development

“…Systematic literature reviews, devoted methods and criteria dedicated to assessing reverse logistics are presented in [53][54][55][56][57]. Reverse logistics in the context of remanufacturing, Industry 4.0, and closed-loop network structures are considered in [58][59][60][61][62]. Finally, a reference model and related methodology of reverse logistics for improving sustainability in the supply chain is proposed in [63].…”

Research on Optimization of Power Battery Recycling Logistics Network

“…There are many research students on recycling logistics network and the results are rich. Desticioglu B [8] studied the construction of a recycling logistics network with stochastic demand, using the CCP method to solve it, and achieved good results. Gao ZH [9] studied multi-objective problems such as fixed cost of vehicle transportation, transportation cost, carbon emission cost during driving and time penalty cost of reverse logistics.…”