Abstract:

A reverse logistics planning problem is modeled and analyzed. The model considers returns of a particular electronic device from customers. Some of the collected products are remanufactured or refurbished. Others are disassembled for their key parts which can be considered as good as new. New products are assembled either using new parts or extracted ones. There are two types dynamic demands: demands for remanufactured/refurbished products and demands for new products. Demand of remanufactured/refurbished products can be satisfied using new products in case of shortage. This is a one way downward substitution. The objective is to minimize total costs while satisfying all demands. This problem is formulated as a MILP. The numerical results show that: i) it is hard for a solver to find optimal solutions for the problem in reasonable computational times for several instances with relatively small time horizons and ii) substitution is justified for a certain range of cost and demand parameters.