An Integrated Forward/Reverse Logistics Network Optimization Model for Multi-Stage Capacitated Supply Chain
Lida Tafaghodi Khajavi, Seyed-Mohammad Seyed-Hosseini, Ahmad Makui
DOI: 10.4236/ib.2011.32030   PDF   HTML     8,233 Downloads   15,760 Views   Citations


In this study, the integrated forward/reverse logistics network is investigated, and a capacitated multi-stage logistics network design is proposed by formulating a generalized logistics network problem into a bi-objective mixed-integer programming model (MIP). The purpose is to minimize the total costs and maximize the responsiveness of the closed- loop supply chain network simultaneously. Moreover branch and bound algorithm is applied to find a global optimum for this model which provides the decisions related to the facility location problem, optimum quantity of shipped product, and facility capacity. Finally, a numerical example is conducted in order to show the power of the proposed MIP model to avoid the sub-optimality caused by separate design of the forward and reverse logistics networks. It has been shown that such an approach can significantly help the managers to make decisions about the problems associated with integrated logistics network design.

Share and Cite:

L. Khajavi, S. Seyed-Hosseini and A. Makui, "An Integrated Forward/Reverse Logistics Network Optimization Model for Multi-Stage Capacitated Supply Chain," iBusiness, Vol. 3 No. 2, 2011, pp. 229-235. doi: 10.4236/ib.2011.32030.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] A. Amiri, “Designing a Distribution Network in a Supply Chain System: Formulation and Efficient Solution Procedure,” European Journal of Operational Research, Vol. 171, No. 2, June 2006, pp. 567-576. doi:10.1016/j.ejor.2004.09.018
[2] Y. Meepetchdee and N. Shah, “Logistical Network Design with Robustness and Complexity Considerations,” International Journal of Physical Distribution & Logistics Management, Vol. 37, No.3, 2007, pp. 201-222.
[3] L. Meade, J. Sarkis and A. Presley, “The Theory and Practice of Reverse Logistics,” International Journal of Logistics System Management, Vol. 3, No. 1, January 2007, pp. 56-84. doi:10.1504/IJLSM.2007.012070
[4] H. üster, G. Easwaran, E. Ak?ali and S. ?etinkaya, “Benders Decomposition with Alternative Multiple Cuts for a Multi-Product Closed-Loop Supply Chain Network Design Model,” Naval Reveres Logistics, Vol. 54, No. 8, September 2007, pp. 890-907.
[5] P. Tsiakis and L. G. Papageorgiou, “Optimal Production Allocation and Distribution Supply Chain Networks,” International Journal of Production Economics, Vol. 111, No. 2, February 2008, pp. 468-483. doi:10.1016/j.ijpe.2007.02.035
[6] D. Lee and M. Dong, “A Heuristic Approach to Logistics Network Design for End-of Lease Computer Products Recovery,” Transportation Research Part E, Vol. 44, No. 3, May 2008, pp. 455-474. doi:10.1016/j.tre.2006.11.003
[7] L. Tafaghodi Khajavi, “Proposing an Optimization Model for Integrated Forward/Reverse Logistics Network Design Under Uncertainty,” M.S. dissertation, Department of industrial engineering, Iran university of science and technology (IUST), 2011.
[8] S. M. Seyed-Hosseini, L. Tafaghodi Khajavi and A. Makui, “An Optimization Model to Develop an Integrated Logistics Network Under Periodic Demand,” Academy of Business Research, Spring 2011 Meeting, New Orleans, LA, March 16-18, 2011.
[9] H. Min, C. S. Ko and H. J. Ko, “The Spatial and Temporal Consolidation of Returned Products in a Closed-Loop Supply Chain Network,” Computers & Industrial Engineering, Vol. 51, No. 2, October 2006, pp. 309-320. doi:10.1016/j.cie.2006.02.010
[10] F. Du and G. W. Evans, “A Bi-Objective Reverse Logistics Network Analysis for Post-Sale Service,” Computers & Operations Research, Vol. 35, No. 8, August 2008, pp. 2617-2634.
[11] F. Altiparmak, M. Gen, L. Lin and T. Paksoy, “A Genetic Algorithm Approach for Multi-Objective Optimization of Supply Chain Networks,” Computers & Industrial Engi- neering, Vol. 51, No. 1, September 2006, pp. 196-215. doi:10.1016/j.cie.2006.07.011
[12] S. Vo? and L. D. Woodruff, “Introduction to Compu- tational Optimization Models for Production Planning in a Supply Chain,” Springer Berlin Heidelberg, New York, 2005.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.