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A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design

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  • Qunli Yuchi
  • Zhengwen He
  • Zhen Yang
  • Nengmin Wang

Abstract

We study a new problem of location-inventory-routing in forward and reverse logistic (LIRP-FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which new goods are produced and damaged goods are repaired by a manufacturer and then returned to the market to satisfy customers’ demands as new ones. Our objective is to minimize the total costs of manufacturing and remanufacturing goods, building DCs, shipping goods (new or recovered) between the manufacturer and opened DCs, and distributing new or recovered goods to customers and ordering and storage costs of goods. A nonlinear integer programming model is proposed to formulate the LIRP-FRL. A new tabu search (NTS) algorithm is developed to achieve near optimal solution of the problem. Numerical experiments on the benchmark instances of a simplified version of the LIRP-FRL, the capacitated location routing problem, and the randomly generated LIRP-FRL instances demonstrate the effectiveness and efficiency of the proposed NTS algorithm in problem resolution.

Suggested Citation

  • Qunli Yuchi & Zhengwen He & Zhen Yang & Nengmin Wang, 2016. "A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design," Discrete Dynamics in Nature and Society, Hindawi, vol. 2016, pages 1-18, July.
    • Handle: RePEc:hin:jnddns:3475369
    DOI: 10.1155/2016/3475369
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    1. Van Engeland, Jens & Beliën, Jeroen & De Boeck, Liesje & De Jaeger, Simon, 2020. "Literature review: Strategic network optimization models in waste reverse supply chains," Omega, Elsevier, vol. 91(C).
    2. Tran, Trung Hieu & Nguyen, Thu Ba T. & Le, Hoa Sen T. & Phung, Duc Chinh, 2024. "Formulation and solution technique for agricultural waste collection and transport network design," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1152-1169.
    3. Chávez, Marcela María Morales & Sarache, William & Costa, Yasel, 2018. "Towards a comprehensive model of a biofuel supply chain optimization from coffee crop residues," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 136-162.
    4. Lihua Liu & Lai Soon Lee & Hsin-Vonn Seow & Chuei Yee Chen, 2022. "Logistics Center Location-Inventory-Routing Problem Optimization: A Systematic Review Using PRISMA Method," Sustainability, MDPI, vol. 14(23), pages 1-39, November.

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