Industrial Engineering & Management

Mathematical Modeling for Minimizing Costs in a Multilayer Multi-Product Reverse Supply Chain

Abstract

Hoda Mahmoudi, Hamed Fazlollahtabar, Iraj Mahdavi

There is a direct or forward currency of material or production in the commodity`s traditional currency and industry managers emphasize on its control and management. This currency continues from suppliers to producers, distributors, retailers and ultimately consumers but in many industries there is another important currency in the supply chain that forms reversely and products will be returned from lower level of the supply chain to a higher level. Reverse logistic wants to manage and study reverse currencies or in other word backward currencies. In this research, we proposed mathematical modeling of reverse supply chain’s costs. The presented model is an integer linear programming model for multi-layer, multi-product reverse supply chain that minimizes the products and parts transportation costs among centers and also sites launch, operation parts, maintenance and remanufacturing costs at the same time. We solve the proposed model using Lingo 9 software.