A Supporting Decision Tool For Reverse Logistics

21 International Conference on Production Research

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A SUPPORTING DECISION TOOL FOR REVERSE LOGISTICS
Riccardo Manzini1, Marco Bortolini, Emilio Ferrari, Andrea Piergallini Department of Industrial Mechanical Plants, Bologna University, viale Risorgimento 2 - 40136, Bologna, Italy

Abstract A systematic procedure based on the integration of strategic planning and operational planningfor reverse logistics in a multi-stage distribution network is illustrated. This is the result of the application of multi-product mixed inter linear programming models which take inspiration from the literature. This study demonstrates the importance and effectiveness of an integrated approach in order to identify the best location of facilities, the allocation of customers (e.g. origination sites)demand to suppliers (e.g. collection sites), and the vehicle routing in accordance with different transportation modes. The proposed procedure has been implemented in a software platform which can significantly supports decision making process for both cost and environmental effects minimization. A case study from the literature is presented illustrating the results obtained by the application ofa what-if multi-scenario analysis and in presence of different settings for problem's parameters.

Keywords: strategic planning, routing, mixed integer programming, environmental effects, linear programming, extended supply chain, WEEE (Waste of Electric and Electronic Equipment)

1 INTRODUCTION The extended supply chain should not only comprehend a manufacturing system where raw materialsare transformed into final products and delivered to end customers/consumers, but it should also integrate the recovery system where end-of-life products are returned to recovery facilities. Consequently the supply chain (SC) includes also the process of "reprocessing". Reverse logistics (RL) refers to the distribution activities involved in product returns, source reduction/conservation, recycling,substitution, reuse, disposal, refurbishment, repair and remanufacturing as illustrated by the conceptual framework in Figure 1. In particular, it clearly distinguishes the forward from the reverse logistics. A product return involves the collection activity of return products at designated regional distribution/collection centers or retail outlets, the transfer and consolidation at centralizedreturn centers, the asset recovery of return products through repairs, refurbishment, etc., and the disposal with no commercial use [1].
FORWARD LOGISTICS
Raw materials    Production  Distribution  Customer/consumer

By this brief introduction and analysis of the literature it can be easily accept the following definition of reverse logistics: "The process of planning, implementing, andcontrolling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal" [3]. Literature presents a lot of studies on logistic network design, management and optimization expecially for forward logistics [4], [5], [6]. The number of studies isquite different for reverse logistics and not significant contributions are illustrated for simultaneously face the strategic and the operational planning. The aim of this paper is the development and application of a supporting decisions platform for the design and management of a reverse logistic network by the integration of the strategic planning and the operational planning. A case study ispresented and the results obtained by the application of the proposed platform are illustrated demonstrating the effectiveness of the proposed models and integrated approach. 1.1 Strategic planning The strategic planning deals with the configuration of the system of returns, i.e. the determination of the number of facilities, the geographical location, the process capacity and the assignment of...