A location-inventory model for integrated forward/reverse logistics network design

To improve integrated forward/reverse logistics management performance, an appropriate design approach for the forward/reverse logistics network structure and logistics operation schedule is proposed. Synthetically taking into account the location problem and inventory relationships of inter-related nodes, a location-inventory (LI) model is developed. With the help of the model, the following items can be computed, such as the optimal sites and numbers of established manufacturing/remanufacturing factory and distribution/collection center, the logistics flows in integrated logistics network and the working days per period of the retail/collection point, also the minimum fees in planning horizon can be obtained simultaneously. In order to acquire design result effectively and efficiently, double-layer genetic algorithm for LI model is presented, and its realization steps are introduced. Besides, effectiveness of LI model and the given algorithm, as well as the influence of inventory management costs on design result are verified by an example.