Optimised redesign of reverse logistics network with multi-level capacity choices for household appliances

Abstract

Reverse logistics networks reintroduce end-of-life products to remanufacturing, which is significant for sustainable development and environmental protection. In this paper, we investigate the current reverse logistics network of household appliances in China and redesign a new network that introduces necessary facilities: disassembly centres and three types of remanufacturing plants to improve recycling rates. A mixed-integer linear programming model with multi-level capacity choices is proposed to determine the locations and capacities for disassembly centres and remanufacturing plants. An efficient decomposition-and-expansion heuristic is developed to solve the model. The redesigned network is evaluated using a real case. The results indicate that the recycling rate is largely improved by the new network in which almost all useful materials can be recycled, whereas, in the traditional network, only metals are efficiently recycled. A sensitivity analysis of model parameters is conducted using the Taguchi method to identify their effects on recycling decisions. The proposed algorithm is further evaluated using a set of randomly generated instances. The results show that the algorithm can yield high-quality solutions within a short time. The best configuration of the algorithm is suggested via sensitivity analysis of parameters using the generated instances.

KEYWORDS:

• Reverse logistics network redesign
• facility location
• capacity choices
• mixed-integer programming
• decomposition-and-expansion heuristic

Acknowledgements

We are grateful for the valuable comments of the reviewers and editor.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by National Natural Science Foundation of China [grant numbers 71871183, 71931007, 71871142].

Notes on contributors

Ada Che

Ada Che is currently a Full Professor in the Department of Management Science and Engineering at Northwestern Polytechnical University, China. He received the Ph.D. degree of Mechanical Engineering from Xi’an Jiaotong University in 1999. He has authored or coauthored over 50 articles in international journals, such as Omega-The International Journal of Management Science, Naval Research Logistics, IEEE Transactions, European Journal of Operational Research, International Journal of Production Research, International Journal of Production Economics, and Computers and Operations Research. He is currently serving as an associate editor of the IEEE Transactions on Intelligent Transportation Systems and Journal of Industrial and Management Optimization. His research interests include transportation planning and optimisation, production scheduling, and operations research.

Jieyu Lei

Jieyu Lei is currently a Ph.D. student in the Department of Management Science and Engineering at Northwestern Polytechnical University, China. She received the M.S. degree of Management Science and Engineering from Xidian University in 2016. As a visiting researcher, she worked with the OPAC group (Operations, Planning, Accounting, and Control) of the Department of Industrial Engineering and Innovation Sciences at Eindhoven University of Technology (TU/e) in 2019. Her research interests include supply chain management, reverse logistics network design, and transportation planning and optimisation.

Zhibin Jiang

Zhibin Jiang is currently a Full Professor in the Department of Management Science at Shanghai Jiao Tong University, China. He is also the dean of the Industrial and System Engineering Institute (Sino-US Global Logistics Institute, SUGLI) of Shanghai Jiao Tong University. He received the Ph.D. degree of Engineering Management from City University of Hong Kong. He has authored or coauthored over 100 articles in international journals such as Production and Operations Management, INFORMS Journal on Computing, IEEE Transactions on Automation Science and Engineering, Omega-The International Journal of Management Science, and International Journal of Production Research. He is currently serving as a fellow of Institute of Industrial and Systems Engineers and associate editor of International Journal of Production Research. His research interests include production and service operations management, healthcare service management, and logistics and supply chain management.