Cost analysis modeling for reverse logistics

Abstract

Reverse logistics, the handling and disposition of returned goods, becomes an interesting topic in both academia and industrial practices. Increased environmental concerns among consumers and returns volumes reinforce the need for implementing a reverse logistics system in every company. However, developing an effective reverse logistics system needs the consideration of many factors. Facility location determination is one of the most important concerns. In this research project, the fundamental knowledge of reverse logistics is studied first by means of a comprehensive literature survey. After that three quantitative models of reverse logistics network design in previous research projects are reviewed. So that the factors affecting reverse logistics network design are identified and used in the model formulation accordingly. The model proposed in this research aims to help manufacturers design an optimal logistics network. Using this model, the number of facilities including warehouses, factories and distribution centers, their locations and the allocation of product flows between each facility are considered. Besides, this model is not only applicable for a close-loop logistics system, but also for an open-loop system with one or more recovery options. Since this model takes account of the effects of learning curve, the cost estimated by this model is more accurate than the other traditional logistics network design models.

Date of Award	15 Feb 2005
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Ying Kit Richard FUNG (Supervisor)