Abstract

There is a direct or forward currency of material or production in the commodity`s traditional currency and industry managers emphasize on its control and management. This currency continues from suppliers to producers, distributors, retailers and ultimately consumers but in many industries there is another important currency in the supply chain that forms reversely and products will be returned from lower level of the supply chain to a higher level. Reverse logistic wants to manage and study reverse currencies or in other word backward currencies. In this research, we proposed mathematical modeling of reverse supply chain’s costs. The presented model is an integer linear programming model for multi-layer, multi-product reverse supply chain that minimizes the products and parts transportation costs among centers and also sites launch, operation parts, maintenance and remanufacturing costs at the same time. We solve the proposed model using Lingo 9 software.

Highlights

  • With the increased environmental concerns and stringent environmental laws, reverse logistics have received growing attention throughout this decade

  • According to the findings of Rogers and Tibben-Lembke [3], the total logistics cost amounted to $862 billion in 1997 and the total cost spent in reverse logistics is enormous that amounted to approximately $35 billion which is around 4% of the total logistics cost in the same year

  • Concerning reverse logistics, a lot of researches have been made on various fields and subjects such as reuse, recycling, remanufacturing logistics etc

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Summary

Introduction

With the increased environmental concerns and stringent environmental laws, reverse logistics have received growing attention throughout this decade. Implementation of reverse logistics especially in product returns would allow for savings in inventory carrying cost, transportation cost, and waste disposal cost due to returned products, and for the improvement of customer loyalty and future sales. Reverse logistics refers to the distribution activities involved in product returns, source reduction, conservation, recycling, substitution, reuse, disposal, refurbishment, repair and remanufacturing [4]. Thierry et al [5], suggested various product recovery options as direct reuse, resale, repair, refurbishing, remanufacturing, cannibalization, and recycling. These options are to be reclassified into three broad categories such as reuse, recycling, and remanufacturing. Concerning reverse logistics, a lot of researches have been made on various fields and subjects such as reuse, recycling, remanufacturing logistics etc. Conclusions and further researches are addressed in the last section

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