A Complex Design of the Integrated Forward-Reverse Logistics Network under Uncertainty

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Abstract:

Design of a logistics network in proper way provides a proper platform for efficient and effective supply chain management. This paper studies a multi-period, multi echelon and multi-product integrated forward-reverse logistics network under uncertainty. First, an efficient complex mixed-integer linear programming (MILP) model by considering some real-world assumptions is developed for the integrated logistics network design to avoid the sub-optimality caused by the separate design of the forward and reverse networks. Then, the stochastic counterpart of the proposed MILP model is used to measure the conditional value at risk (CVaR) criterion, as a risk measure, that can control the risk level of the proposed model. The computational results show the power of the proposed stochastic model with CVaR criteria in handling data uncertainty and controlling risk levels.

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Journal title

volume 23  issue 2

pages  113- 123

publication date 2012-06

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