Title
Integrated Decision-Making In Reverse Logistics: An Optimisation Of Interacting Acquisition, Grading And Disposition Processes
Abstract
In view of global environmental and social challenges the transition towards a Circular Economy is considered as a crucial factor for sustainable development. Therefore, the replacement of traditional linear business models involving product discard at the end of product life with concepts focusing on re-use of resources is essential. Reverse Logistics and Closed-loop Supply Chains are seen to be key elements of such a transition. Motivated by findings from a case study of an independent reprocessing company, we address integrated decision-making in Reverse Logistics in this paper. We present a non-linear optimisation model with interrelated processes in terms of acquisition of used products, grading for determination of product quality and reprocessing disposition. The decisions to be made concern the effort spent for active acquisition of used products and the number of reprocessed goods; both decisions are influenced by heterogeneous condition of used products. The consideration of deterministic and stochastic demand facilitates the representation of a variety of business cases. For both demand types we provide analytical insights in the form of complete strategies consisting of different scenarios which allow optimal decision-making under variable conditions. Numerical examples complement insights into the model by conducting a sensitivity analysis of relevant model parameters.
Year
DOI
Venue
2020
10.1080/00207543.2019.1659518
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Keywords
DocType
Volume
reverse logistics, decision support systems, non-linear programming, newsvendor, integrated decision-making
Journal
58
Issue
ISSN
Citations 
19
0020-7543
0
PageRank 
References 
Authors
0.34
0
2
Name
Order
Citations
PageRank
Gernot Lechner111.16
Marc Reimann2335.17