Abstract
In this paper we deal with a model for optimizing the costs of an integrated production, distribution and package reprocessing problem. As a contribution to integrated production and distribution model, a reverse material Žow of returnable packages material (RPM) Žow and a retreating process of the RPM are incorporated into the model and extended to a closed-loop supply chain. A linear programming mathematical model is constructed for the beverage industry, although the model could also be applied to other industry that includes a RPM feedback Žow. The optimization model provides a number of decision variables such as production quantity and time, RPM ratio, production line allocation transportation routing, RPM retreating scheduling. The proposed model allows to introduce and change multiple parameters in each of the different parts of the closed loop supply chain. Finally, a numerical example involving a bottling industry of standardized packaging is solved utilizing the optimization software Gurobi, and a minimal cost solution is presented.
