A case study in the design of service networks for reverse logistics

In this research we develop a mixed integer linear programming (MILP) model for the design of service networks for repair and refurbishment of short life-cycle products with component commonality (such as electronics and IT products). The solution to the network design problem is the locations of facilities and flows of products and modules among those facilities that result in the least total overall cost, while satisfying the capacity, flow and logical constraints. The data for the model was provided by a company providing after sales support in Asia, including Japan and Australia. The recommendation of the optimal network design was to merge the two existing China country distribution centers into one distribution centre, located in Shanghai.