Design of a multi echelon product recovery embeded reverse logistics network for multi products and multi periods

Abstract

Product recovery, accompanied by cradle to cradle policies from the contemporary supply chain, becomes an essential element in meeting environmental compliance and waste management policies. Incorporation of reverse logistics into the traditional supply chains becomes a complementary factor for efficient product recovery. To begin with product recovery, consumers are encouraged to return their end-of-use/end-of-life products, and the steps of collecting and planning the movement of returned products are crucial decisions. The efficient planning of a cost effective recovery process in reverse logistics requires dealing with the uncertainty underlying in the quantity and quality of the returned products. In this paper, we propose establishing an initial collection point within a permissible radius of the customer zones to overcome some of the issues of uncertainty. The uncertainty in the quantity and quality of the returned products are modelled using fuzzy triangular numbers. To capture the real world conditions of the proposed problem, our model aims at maximizing the profit incurred in the recovery process in an uncertain environment. The model was solved with the help of fuzzy mathematical programming. The model is validated by a company case belonging to the manufacturing of electronic products. To increase the applicability of the product recovery process in the industry, we propose a recovery process for the planning horizon consisting of multi periods and multi products. The outcomes of the proposed model indicate that for the successful realisation of such network, customers need to be legally enforced to return their end of used products in the channels established for value recovery.