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Reverse logistics network design under extended producer responsibility: The case of out-of-use tires in the Gran Santiago city of Chile

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  • Banguera, Leonardo A.
  • Sepúlveda, Juan M.
  • Ternero, Rodrigo
  • Vargas, Manuel
  • Vásquez, Óscar C.

Abstract

This paper seeks to describe several features of the reverse logistics network design under extended producer responsibility, in which the collection goals and penalties for the management system are established by a regulatory legal framework. To address this design network challenge, the paper develops a mixed integer linear programming model for capacitated facility location, which meets recycling targets and minimize the cost of fines in case of infeasibility, through relaxation of constraints. Consequently, the optimal flows, the configuration of collection, reprocessing and recycling facilities, and the estimation of the monetary transfers necessary for the feasible operation of the optimal management system are computed. To illustrate the usefulness of the proposed model, a numerical example based on the case of out-of-use tires (OUT) in the Gran Santiago city of Chile is considered. Forty-two scenarios are defined by a specific offer of OUT for the year 2020 and a possible ratio of OUT to be collected in the reverse logistic network imposed by the authorities. The obtained results show the optimal sets of service center, collection centers and reprocessing plants for each scenario, allowing to study the maximum benefit/minimum investment to develop a management system under the EPR national law.

Suggested Citation

  • Banguera, Leonardo A. & Sepúlveda, Juan M. & Ternero, Rodrigo & Vargas, Manuel & Vásquez, Óscar C., 2018. "Reverse logistics network design under extended producer responsibility: The case of out-of-use tires in the Gran Santiago city of Chile," International Journal of Production Economics, Elsevier, vol. 205(C), pages 193-200.
    • Handle: RePEc:eee:proeco:v:205:y:2018:i:c:p:193-200
    DOI: 10.1016/j.ijpe.2018.09.006
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    References listed on IDEAS

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    Cited by:

    1. Pasquale Pazienza & Caterina De Lucia, 2020. "The EU policy for a plastic economy: Reflections on a sectoral implementation strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 779-788, February.
    2. Tong, Xun & Chen, Jianghang & Zhu, Qinghua & Cheng, T.C.E., 2018. "Technical assistance, inspection regime, and corporate social responsibility performance: A behavioural perspective," International Journal of Production Economics, Elsevier, vol. 206(C), pages 59-69.
    3. Navarro Ferronato & Vincenzo Torretta, 2019. "Waste Mismanagement in Developing Countries: A Review of Global Issues," IJERPH, MDPI, vol. 16(6), pages 1-28, March.
    4. Daniel A. Salas & Paulina Criollo & Angel D. Ramirez, 2021. "The Role of Higher Education Institutions in the Implementation of Circular Economy in Latin America," Sustainability, MDPI, vol. 13(17), pages 1-27, August.
    5. Navid Zarbakhshnia & Devika Kannan & Reza Kiani Mavi & Hamed Soleimani, 2020. "A novel sustainable multi-objective optimization model for forward and reverse logistics system under demand uncertainty," Annals of Operations Research, Springer, vol. 295(2), pages 843-880, December.
    6. Kieran Campbell-Johnston & Martin Calisto Friant & Kaustubh Thapa & Dirkjan Lakerveld & Walter J V Vermeulen, 2020. "How circular is your tyre: Experiences with extended producer responsibility from a circular economy perspective," Post-Print hal-02883432, HAL.

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