THE ANALYSIS OF AN EXTENDED AVERAGE COST INVENTORY MODEL FOR REVERSE LOGISTIC PLANNING

Abstract

ABSTRACT Because of the increasing environmental consciousness and prevalence of resources reviving concept, promoting products reverse logistic system in order to carry out products recycling and remanufacturing has became a very important issue. This paper focuses on reverse logistic system planning by investigating end-of-life (EOL) product material flow and inventory management models. Based on the research of reverse logistic average cost inventory model by Teunter and van der Laan [6], we suggest an extended reverse logistic inventory model, which includes the operation of product decomposing in order to carry out parts and materials recycling, reusing and remanufacturing in the system. By adding such a capability, our goal is to conduct an extended inventory total cost model evaluation in order to achieve a better environmental awareness decision for reverse logistic planning. In the paper, the GA mathematic algorithm is used as a tool to analyze results of average cost inventory model for constructing a better reverse logistic planning decision model.