Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)
-
Upload
alice-ramsey -
Category
Documents
-
view
215 -
download
1
Transcript of Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)
![Page 1: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/1.jpg)
Reverse Logistics Networks
Steven WalkerLogistic Systems: Design and
Optimization (Chapter 6)
![Page 2: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/2.jpg)
Introduction
Definition Reverse logistics –
Handling of the return flows of product or equipment back from consumer for reuse, recovery, or recycling.
How is it different? Reverse flow of goods back from customer May require additional facilities and
transportation costs for material handling (disassembly)
![Page 3: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/3.jpg)
Introduction
Reasons for Reverse Logistic (RL) Networks: Environmental
Green initiatives Electronic waste Hazardous metals (RoHS)
Economic Reduced raw material costs
Customer Service Customer satisfaction
![Page 4: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/4.jpg)
Introduction
Applications Facility Location* Inventory Management* Transportation* Production Planning
*Example problem will focus on these applications.
![Page 5: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/5.jpg)
Recovery Programs
Economic interests Reduces raw material costs
Types of Recovery: Product – recycled directly or repaired and sent back
under warranty Component – Product is dismantled and components
are used in same or similar products Material – recyclables like metal, paper, or glass Energy - Incineration
![Page 6: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/6.jpg)
Types of Networks
Directly Reusable Easily re-used with very little added effort. Example – pallets, bottles, or containers
Remanufacturing Returned products dismantled and parts or
components used like new Example – copy machine, aircraft engine
![Page 7: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/7.jpg)
Types of Networks (cont’d)
Repair Service Defective products returned and repaired
Recycling Recycling of raw materials
![Page 8: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/8.jpg)
RL Network Framework
Suppliers
Material Recycling
ProductionDistribution Customers
CollectionIntermediate Processing
![Page 9: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/9.jpg)
Types of Decisions
Strategic Must include reverse flow recovery path in
network Must consider costs related to forward and
reverse channels that returned material travel through
Location of plants and warehouses for recovery
Ex.- collection points and remanufacturing plants.
![Page 10: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/10.jpg)
Types of Decisions (cont’d)
Tactical Integration of return flows with forward flows.
Combining or separating return flow goods with forward flow?
Isolating forward goods from reverse goods in warehouses to prevent shipping errors?
Designated holding areas, “QA Jail” Deciding when to use new or recycled parts? Organization of labor? When should products be repaired?
Repair, Scrap, Send back to OEM
![Page 11: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/11.jpg)
Types of Decisions (cont’d)
Operational Production Scheduling Assignment of Labor Disassembly and reassembly
![Page 12: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/12.jpg)
Example Problem
Closed-loop logistics model for remanufacturing Closed-loop – forward flows are closely related to
reverse flows Model involves both inventory costs, facility location,
and transportation Remanufacturing is both environmentally and
economically friendly in the re-use of returned products Cores = returned used products Source: Jayaraman, V., et.al. (1999). A closed-loop logistics
model for remanufacturing. Journal of the Operational Research Society, 50:497-508.
![Page 13: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/13.jpg)
Example Problem (cont’d)
Parameters
dik
![Page 14: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/14.jpg)
Example Problem (cont’d)
Decision variables
![Page 15: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/15.jpg)
Example Problem (cont’d)
Objective Function Minimize costs
Inventory holding Facility Location Transportation
![Page 16: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/16.jpg)
Example Problem (cont’d)
Constraints
(1) Total number of remanufactured products does not exceed the demand
(2) Total number of remanufactured products is less than the total cores of the product brought into the facility.
![Page 17: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/17.jpg)
Example Problem (cont’d)
(3) Product storage capacity constraint
(4) Core storage capacity constraint
(5) Total number of facilities is less than P
![Page 18: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/18.jpg)
Example Problem (cont’d)
(6) Restricts the amount of cores that can be supplied from a collection zone
(7) Non-negativity
(8) Binary (yes/no) decision variable Zj
![Page 19: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/19.jpg)
Example Problem (cont’d)
How is the problem solved? Can be solved with LP solvers (GLPK) Commercial Solvers (CPLEX)
Because these problems can get large in a hurry, commercial solvers are necessary due to the # of variables
Interfaces with C++ Uses the simplex method much like other LP
solvers Heuristics also used due to the size of these
problems.
![Page 20: Reverse Logistics Networks Steven Walker Logistic Systems: Design and Optimization (Chapter 6)](https://reader030.fdocuments.us/reader030/viewer/2022032709/56649ed45503460f94be506a/html5/thumbnails/20.jpg)
Questions?
??