Network Design for Reverse Logistics – A Case of Recycling Used Truck Tires

Abstract

Managing the products at the end of its intended use and recovery of such used products from the market is gaining significant importance these days due to global environmental concerns, resource reduction, government regulations and economic factors. Reverse logistics networks serve the same. The handling of products, components and materials during the recovery process can be called reverse logistics. Due to the increasing number of heavy vehicles in the country like India, large quantities of used tires are generated every year, and proper disposal of these used tires creates problem in the day-to-day life. Hence recover the value from these used tires in the form of material recovery is gaining importance. The implementation of such recycling system usually requires an appropriate reverse logistics network for choosing the physical locations, facilities, and transportation links to convey the used products from the end customers to the recycling facility. A case study was conducted and traditional reverse logistics networks involved in the used tires focusing quality characteristics has been analyzed in the paper and a new network has been suggested focusing the quality characteristics of material recovered out of used tires through laboratory work and at the same time without compromising the cost factor involved in it. Finally a mathematical model has been developed and optimization of cost subjected to quantity, and time has been done and validated for the decision makers involved in the reverse logistics activities of used tires recycling.