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A Facility Location Model for Bidirectional Flows

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  • Kristin Sahyouni

    (Industrial Engineering and Management Sciences, Northwestern University, Evanston, Illinois 60208)

  • R. Canan Savaskan

    (Kellogg School of Management, Northwestern University, Evanston, Illinois 60208)

  • Mark S. Daskin

    (Industrial Engineering and Management Sciences, and Kellogg School of Management, Northwestern University, Evanston, Illinois 60208)

Abstract

Recent research on reverse logistics and closed-loop supply chains has produced a number of specialized network design models. We develop three generic facility location models for the integrated distribution and collection of products that accommodate a variety of applications and industries. These models quantify the value of integrated decision making in the design of forward and reverse logistics networks throughout different stages of a product's life cycle. The formulations extend the uncapacitated fixed-charge location model to include the location of used product collection centers and the assignment of product return flows to these centers. In addition, we develop a Lagrangian relaxation-based solution algorithm that is both quick and effective. We measure the implications of integrated decision making by comparing the total facility and transportation costs of our joint optimization models with the cost of solutions in which forward and reverse facility location decisions are made sequentially or independently of one another. In addition, we discuss the implications of integrated decision making on network configuration and introduce a new network similarity measure to quantify this analysis. Computational results are also presented.

Suggested Citation

  • Kristin Sahyouni & R. Canan Savaskan & Mark S. Daskin, 2007. "A Facility Location Model for Bidirectional Flows," Transportation Science, INFORMS, vol. 41(4), pages 484-499, November.
    • Handle: RePEc:inm:ortrsc:v:41:y:2007:i:4:p:484-499
    DOI: 10.1287/trsc.1070.0215
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    Cited by:

    1. Gopalakrishnan Easwaran & Halit Üster, 2009. "Tabu Search and Benders Decomposition Approaches for a Capacitated Closed-Loop Supply Chain Network Design Problem," Transportation Science, INFORMS, vol. 43(3), pages 301-320, August.
    2. 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).
    3. De Rosa, Vincenzo & Gebhard, Marina & Hartmann, Evi & Wollenweber, Jens, 2013. "Robust sustainable bi-directional logistics network design under uncertainty," International Journal of Production Economics, Elsevier, vol. 145(1), pages 184-198.
    4. Zhi-Hai Zhang & Gemma Berenguer & Zuo-Jun (Max) Shen, 2015. "A Capacitated Facility Location Model with Bidirectional Flows," Transportation Science, INFORMS, vol. 49(1), pages 114-129, February.
    5. Yuxiang Yang & Zuqing Huang & Qiang Patrick Qiang & Gengui Zhou, 2017. "A Mathematical Programming Model with Equilibrium Constraints for Competitive Closed-Loop Supply Chain Network Design," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(05), pages 1-31, October.
    6. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    7. Gaur, Jighyasu & Amini, Mehdi & Rao, A.K., 2017. "Closed-loop supply chain configuration for new and reconditioned products: An integrated optimization model," Omega, Elsevier, vol. 66(PB), pages 212-223.
    8. Halit Üster & Sung Ook Hwang, 2017. "Closed-Loop Supply Chain Network Design Under Demand and Return Uncertainty," Transportation Science, INFORMS, vol. 51(4), pages 1063-1085, November.
    9. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).
    10. Pauline Keh & Florence Rodhain & Régis Meissonier & Virginie Llorca, 2012. "Financial performance, environmental compliance, and social outcomes: The three challenges of reverse logistics," Post-Print hal-01965596, HAL.
    11. Guanshuang Jiang & Qi Wang & Ke Wang & Qianyu Zhang & Jian Zhou, 2020. "A Novel Closed-Loop Supply Chain Network Design Considering Enterprise Profit and Service Level," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    12. Josip Marić & Marco Opazo-Basáez, 2019. "Green Servitization for Flexible and Sustainable Supply Chain Operations: A Review of Reverse Logistics Services in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 65-80, December.
    13. Mark S. Daskin, 2008. "What you should know about location modeling," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(4), pages 283-294, June.
    14. Jeffrey D. Shulman & Anne T. Coughlan & R. Canan Savaskan, 2009. "Optimal Restocking Fees and Information Provision in an Integrated Demand-Supply Model of Product Returns," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 577-594, December.

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