Optimization Model for Closed-loop Logistics Network Design in Manufacturing and Remanufacturing System

The design of closed-loop logistics network is studied for manufacturing and remanufacturing system. An optimization model for closed-loop logistics network design is proposed on the base of 0-1 mixed integer linear programming approach. According to the model, the number of various facilities, their locations and the allocation of the corresponding logistics flows can be decided upon and set up appropriate closed-loop logistics network structure in order to minimize the total cost of investment and operation. This study contemplates the closed-loop logistics network with the single-product, single-period and facilities with limited capability location-allocation problem, and also considers the logistics distribution of remanufactured products and new products which can not be replaced mutually in the forward logistics. The model is tested on an illustrative case.