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Modeling of Facility Location Problem for Reverse Logistics System with Uncertainty in Forward and Reverse Flows of Products

Saif Ullah1,3, Guan Zailin1, Xu Xianhao1 , He Zongdong1,2, Wang Baoxi1, and Mirza Jahanzeb3
1.State Key Lab of Digital Manufacturing Equipment and Technology, HUST-SANY Joint Lab of Advanced Manufacturing, Huazhong University of Science and Technology (HUST), Wuhan, China
2.SANY Heavy Industry Co., Ltd., Changsha, China
3.Department of Industrial Engineering, University of Engineering and Technology, Taxila, Pakistan

Abstract—Facility location problem has been given lot of attention to efficiently manage the flow of new products and returned products from customer to remanufacturing facilities. However, little effort has been paid to describe its comprehensive model with considering uncertainty in the flow of products from producers to customers and returned products from customers to remanufacturing facilities simultaneously. A mixed integer model for facility location problem with uncertainty in demand and returning products, safety stock levels for new and returning products considering facilities fixed cost, holding costs, and shipping costs simultaneously is presented here. Current research is significant to solve simultaneous facility location and inventory levels for returning products and new products for reverse logistics research with uncertainty in demand and in the returning products, in future.

Index Terms—facility location, reverse logistics, uncertain flow of products

Cite: Saif Ullah, Guan Zailin, Xu Xianhao, He Zongdong, Wang Baoxi, Mirza Jahanzeb, "Modeling of Facility Location Problem for Reverse Logistics System with Uncertainty in Forward and Reverse Flows of Products," International Journal of Mechanical Engineering and Robotics Research, Vol.4, No. 3, pp. 242-246, July 2015. DOI: 10.18178/ijmerr.4.3.242-246