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Design and planning of supply chains with integration of reverse logistics activities under demand uncertainty

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  • Cardoso, Sónia R.
  • Barbosa-Póvoa, Ana Paula F.D.
  • Relvas, Susana

Abstract

In this paper, a mixed integer linear programming (MILP) formulation is developed for the design and planning of supply chains with reverse flows while considering simultaneously production, distribution and reverse logistics activities. It is also considered products’ demand uncertainty using a scenario tree approach. As main goal the model defines the maximization of the expected net present value and the results provide details on sizing and location of plants, warehouses and retailers, definition of processes to install, establishment of forward and reverse flows and inventory levels to attain. The model is applied to a representative European supply chain case study and its applicability is demonstrated.

Suggested Citation

  • Cardoso, Sónia R. & Barbosa-Póvoa, Ana Paula F.D. & Relvas, Susana, 2013. "Design and planning of supply chains with integration of reverse logistics activities under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 226(3), pages 436-451.
    • Handle: RePEc:eee:ejores:v:226:y:2013:i:3:p:436-451
    DOI: 10.1016/j.ejor.2012.11.035
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