Abstract
This paper discusses how to integrate forward and reverse logistics to decrease the total cost of third party logistics service providers. A mathematic model is provided without the assumption of straight-line distance. Demand for product and return amount of product can vary randomly in this model. We also allow that the demand of customers can exceed the capacity of their suppliers. Then we develop a Genetic Algorithm to solve this NP-hard problem and discuss its convergence. At last a numerical example is available.
