Open Loop Reverse Supply Chain Network Design

Abstract

Reverse supply chain management is a significant issue for sustainable economy, product recovery and green thinking. The purpose of this study is to contribute product recovery management by designing open loop reverse supply chain network. The main difference between open loop and closed loop reverse supply chain is in returning of used products. In a closed loop reverse supply chain, used products are generally returned to original producers. But in an open loop reverse supply chain, used products are not returned to original producers, outsider firms recover them. This paper presents a mathematical model for multi stage and multi period reverse supply chain network, which maximizes total profit of the network. The proposed model determines facility locations and material flows between stages in each period. Numerical experiments showed the applicability and efficiency of the model.