State of the art in determining the optimal reverse logistics network for your product

Abstract

The primary focus of this study is to explore and answer the following research question: “In what ways can organizations enhance the efficiency and responsiveness of their reverse logistics network design?” The study presents a conceptual framework that the authors have built, incorporating several essential variables to guide the process of network design. The conceptual framework for reverse logistics networks has been developed by conducting an analysis of the fundamental factors that influence network design decisions. This paradigm facilitates the decision-making process for firms when considering the centralization or decentralization of their reverse logistics operations and the outsourcing or insourcing of specific operational aspects. Moreover, the authors have discovered and highlighted relevant literature that exhibits strong alignment with our proposed framework, hence offering useful insights for decision-making in the domain of reverse logistics network design. Within our framework, two crucial dimensions are considered at each stage: the choice between internal processing vs . outsourcing and the decision to centralize or decentralize operations. With consideration of the factors noted above, this paper proposes a mixed integer linear programming model for the design of a reverse logistics network. This model aims to minimize the total cost at each stage of reverse logistics operations.