Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management

In this study, an optimization model is formulated for designing an integrated forward and reverse logistics network in the consumer goods industry. The resultant model is a mixed-integer linear programming model (MILP). Its purpose is to minimize the total costs of the closed-loop supply chain netw...

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Main Authors: Eva Ponce-Cueto, Melisa Molenat Muelas
Format: Article
Language:English
Published: Universitat Politecnica de Valencia 2015-01-01
Series:International Journal of Production Management and Engineering
Subjects:
Online Access:http://polipapers.upv.es/index.php/IJPME/article/view/3314
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author Eva Ponce-Cueto
Melisa Molenat Muelas
author_facet Eva Ponce-Cueto
Melisa Molenat Muelas
author_sort Eva Ponce-Cueto
collection DOAJ
description In this study, an optimization model is formulated for designing an integrated forward and reverse logistics network in the consumer goods industry. The resultant model is a mixed-integer linear programming model (MILP). Its purpose is to minimize the total costs of the closed-loop supply chain network. It is important to note that the design of the logistics network may involve a trade-off between the total costs and the optimality in commercial goods management. The model comprises a discrete set as potential locations of unlimited capacity warehouses and fixed locations of customers’ zones. It provides decisions related to the facility location and customers’ requirements satisfaction, all of this related with the inventory and shipment decisions of the supply chain. Finally, an application of this model is illustrated by a real-life case in the food and drinks industry. We can conclude that this model can significantly help companies to make decisions about problems associated with logistics network design.
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spelling doaj.art-1757399c1d5e4d28a6b8baf8afa0872b2022-12-21T19:00:51ZengUniversitat Politecnica de ValenciaInternational Journal of Production Management and Engineering2340-48762015-01-0131253210.4995/ijpme.2015.33142759Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods managementEva Ponce-Cueto0Melisa Molenat Muelas1Universidad Politécnica de MadridUniversidad Politécnica de MadridIn this study, an optimization model is formulated for designing an integrated forward and reverse logistics network in the consumer goods industry. The resultant model is a mixed-integer linear programming model (MILP). Its purpose is to minimize the total costs of the closed-loop supply chain network. It is important to note that the design of the logistics network may involve a trade-off between the total costs and the optimality in commercial goods management. The model comprises a discrete set as potential locations of unlimited capacity warehouses and fixed locations of customers’ zones. It provides decisions related to the facility location and customers’ requirements satisfaction, all of this related with the inventory and shipment decisions of the supply chain. Finally, an application of this model is illustrated by a real-life case in the food and drinks industry. We can conclude that this model can significantly help companies to make decisions about problems associated with logistics network design.http://polipapers.upv.es/index.php/IJPME/article/view/3314forward/reverse logistics networknetwork designmixed-integer linear programmingfacility locationcommercial goods
spellingShingle Eva Ponce-Cueto
Melisa Molenat Muelas
Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
International Journal of Production Management and Engineering
forward/reverse logistics network
network design
mixed-integer linear programming
facility location
commercial goods
title Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
title_full Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
title_fullStr Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
title_full_unstemmed Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
title_short Design of an integrated forward and reverse logistics network optimi-zation model for commercial goods management
title_sort design of an integrated forward and reverse logistics network optimi zation model for commercial goods management
topic forward/reverse logistics network
network design
mixed-integer linear programming
facility location
commercial goods
url http://polipapers.upv.es/index.php/IJPME/article/view/3314
work_keys_str_mv AT evaponcecueto designofanintegratedforwardandreverselogisticsnetworkoptimizationmodelforcommercialgoodsmanagement
AT melisamolenatmuelas designofanintegratedforwardandreverselogisticsnetworkoptimizationmodelforcommercialgoodsmanagement