Optimal Design of Returned Logistics Network Based on Genetic Algorithm

Abstract

To improve returned logistics management performance, an appropriate design approach for returned logistics network structures and operation schedules are proposed. Synthetically taking into account the location problem and inventory relationships of inter-related nodes, a nonlinear integer programming (NLIP) model is developed. With the help of the model, the following items can be computed, such as the optimal sites and numbers of both established processing factories and collection centers, the logistics flows in returned logistics network and the working days per period of collection centers, also the minimum fees in planning horizon can be obtained simultaneously. In order to acquire design result effectively and efficiently, the genetic algorithm for NLIP model is presented, and its realization steps are introduced. Besides, effectiveness of NLIP model and the given algorithm, as well as the influence of inventory carrying fees on design result are verified by an example.