Optimizing the Total Cost of an E-waste Reverse Supply Chain Considering Transportation Risk

Abstract

Due to technological boom, the quantity of electronic goods is significantly growing. After their useful life, they become e-waste which has considerable impacts on the environment and society. To mitigate the issue, the reverse supply chain (RSC) has been investigated to reuse components or recycle raw materials contained in e-waste. The total cost of RSC operation is one of the vital issues which has been receiving more attention from both industry and academia. The existing research concentrates on minimizing the overall cost of the system like transportation, operating, disposal and fixed costs. However, risks normally involved during the transportation of e-waste in RSC network has not been addressed. These risks might involve collection delays, breakdown of trucks, accidents and the variation of hazardous materials which can result in unexpected disruptions and significantly higher cost. Currently, there is no research incorporating transportation risk in RSC operation. This paper is aimed to develop a mathematical model for the total cost minimization of an ewaste RSC system with consideration of transportation risk. A mixed integer linear programming is applied in the proposed model and solved by an optimization software. To illustrate the applicability of the proposed model, a numerical example is also examined. The results of this paper can decide the optimal locations for treatment centers and the flow of used products or components delivered within an e-waste RSC network. This result can support managers to design an e-waste RSC network whilst transportation risk factors are considered.

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