Abstract
This article describes a mathematical model for the design of supply chain network for a company that sells its products through a set of retail stores that integrates both the movement of fresh products and the returns from the customers. Specifically, the company faces a situation where, given the location and demand from the set of retail stores, it wishes to decide where to locate the warehouses (or distribution centres) and test centres and the routes to be used in transporting the fresh products from warehouses to stores, returned products from stores to test centres and finally, re-stockable returned products from test centres to warehouses. This is formulated as a binary integer linear programming problem. The problem is solved using LINGO and then, an analysis is performed to determine the sensitivity of the optimal solution to different parameters, including sales volumes, return rates, costs of operation and transportation and the various prices.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
