Two-phase approach to an integrated reverse logistics network considering different qualities of returned products

Abstract

Purpose

Some essential issues about modeling of reverse logistics (RL) systems and product recovery networks include consideration of the qualities of the returned products, taking into account uncertainty and integrating the forward and reverse flows. The purpose of this paper is to develop the integrated RL model, which focuses on the control of inventory and production planning problems in a case of uncertainty in demand, quantities and qualities of returns.

Design/methodology/approach

The model involves a forward production route, three alternative recovery routes and a disposal route. Various levels of qualities are considered for returned products. A fuzzy mixed integer programming model (FMIP) is developed to provide a solution for the problems of production planning and inventory control. After maximizing the satisfaction degree, different solutions can have the same maximum. Moreover, policies that use all recovery routes and reduce the overall uncertainty have no chance to be chosen. To tackle these problems, a two-phase approach method is applied.

Findings

According to the results of the numerical example, using different and appropriate recovery options based on the quality of returns can significantly decrease the recovery costs. Similarly, it is shown that the two-phase approach can be an effective and efficient method to reach a satisfactory solution for such problems.

Originality/value

In this study, after maximizing the FMIP model, a two-phase approach ‒ as a novel optimization technique in this research ‒ is employed to achieve a desirable solution.

Citation

Tarin, N., Azar, A. and Ebrahimi, S.A. (2020), "Two-phase approach to an integrated reverse logistics network considering different qualities of returned products", Journal of Advances in Management Research, Vol. 17 No. 3, pp. 369-395. https://doi.org/10.1108/JAMR-07-2019-0137