Redesigning an Existing Recovery Logistics Network in Closed Loop Supply Chain

抄録

Closed loop supply chains (CLSC) can be both a forward supply chains and also reverse supply chains. Recently CLSCs are gaining much attention because of the growing need for environmental conservation. A CLSC has a number of features that distinguish it from simply a forward supply chain. One of them is requiring a large fixed cost because of the many facilities required to collect and disassemble products at the end of their service life. Another is the additional costs required for expanding capacity to handle the increase in remanufactured products and parts. In this paper, the problems of redesigning an existing logistics network in the CLSC is addressed. Redesigning an existing logistics network considers both opening new facilities and closing existing facilities. To reduce the fixed cost of facilities, opening hybrid facilities and decisions regarding the volume of products at each facility are considered. For the forward supply chain, redesign problems have been well researched, but this study is the first effort to consider redesigning an existing logistics network while considering profit from the sale of land property as part of the actual data in a CLSC. A new mathematical programming model is proposed. To validate the network redesign model proposed, it is applied to a real industrial case. Through the case study, it was found that the model proposed addresses redesigning an existing CLSC logistics network corresponding to recycling and resource savings, and validates the extent of economic efficiency.