A Novel Stochastic Optimization Model for Reverse Logistics Network Design of End-of-Life Vehicles: A Case Study of Istanbul

Abstract Waste management is gaining crucial importance as recycling aims at transforming produced waste into value for the economy. As automotive industry growing fast worldwide, end-of-life vehicles (ELVs) attracts great research attention. Due to promulgated regulations, multiple players like last owners, manufacturers, treatment centres, and municipalities require a more cooperative engagement. The participation of actors in process ELVs brings various uncertainties. Additionally, parameters process, number withdrawn per year, cost items, material composition tend change due technological, social, economic developments. has Turkish economy, which highly affected by socio-political issues. Furthermore, Istanbul metropolitan area highest rate vehicle ownership Turkey. For that purpose, this paper proposes scenario-based real-life stochastic optimization model improve ELV supply chain network Istanbul. Sensitivity analyses changes scenario occurrence probabilities amount collected are performed question consistency study. results mathematical highlight operational items have greatest ratio comparing other model. sensitivity analysis underline costs selling prices materials from significant impact on profitability ELVs’ process. In addition, uncertainty effect both strategical decision-making processes. This can be extended direction examining effectiveness Turkey since could represent whole with its cultural characteristics. Further works also try implement novel concept “socially resilient chain” management.