A tabu search heuristic for reverse logistics network design

Reverse logistics (RLs) network design issues have been popularly discussed in recent years. However, few papers in past literatures have been dedicated to the use of incentive effecton return quantity of used products. This study formulates an optimization model of RLs network design with the aim ofmanagement in allocating used product by coordinating collection centers and recovery facilities to ensure minimum cost. This work assumes collection centers as having multi-capacity levels and the model is multi-period. Due to the fact that problem is known as NP-hard, is proposed a hybrid heuristic methodsbased tabu search (TS) solution procedures to solve this problem. Finally, we discuss several dominance properties of optimalsolutions and for the sake of comparison a medium size numerical example is presented to show the efficiency of the model.

Keywords:

dynamic reverse logistics , mixed integer nonlinear programming model , heuristic algorithm