Multi-period reverse logistics network design with emission cost

Abstract

Purpose

The purpose of this paper is to develop a mathematical model for the network design of a reverse supply chain in a multi-product, multi-period environment. The emission cost due to transportation activities is incorporated into the model to reduce the total cost of emission and study the significance of inclusion of emission cost on the network design decisions.

Design/methodology/approach

Mixed integer linear programming formulation is used to model the network. The developed model is solved and analysed using the commercial solver LINGO.

Findings

The mathematical model provides a unified design of the network for the entire planning horizon comprising of different periods. A reduction in the total cost of emission is achieved. The analysis of the problem environment shows that the network design decisions significantly vary with the consideration of emission cost.

Research limitations/implications

A single mode of transportation is considered in this study. Also, a single type of vehicle is considered for the transportation purpose.

Practical implications

The developed model can aid the decision makers in making better decisions while reducing the total emission cost. The quantification of the emission cost due to transportation activities is presented in an Indian context and can be used for future studies.

Originality/value

An all-encompassing approach for the design of reverse logistics networks with explicit consideration of product structure and emission cost.

Citation

John, S.T., Sridharan, R. and Kumar, P.N.R. (2017), "Multi-period reverse logistics network design with emission cost", The International Journal of Logistics Management, Vol. 28 No. 1, pp. 127-149. https://doi.org/10.1108/IJLM-08-2015-0143