Research On Selection Of Reverse Logistics Channel And Optimization Of The Network For Iron And Steel Companies In China

Scrap steel recycling plays an essential and strategic role in the development of circular economy for the steel industry.Compare to producing steel by iron ore and coal,producing by scrap can save 60%energy,40%water and can reduce 86%emission of waste air,76%discharging of wastewater and 97%waste residue.Scrap iron and steel is a vital supplement material of steel production.Facing the shortage of resources and environmental pollution while under the situation of vast scrap are producing and increasing,how to construct effective reverse logistics network and improve cyclic utilization of scrap are of great challenge for Chinese steel industry.In accordance with development of reverse logistics in iron and steel companies,this research aims at providing decision-making method for iron and steel companies to choose reverse logistics channel and design reverse logistics network.At the same time,the research delivers policy suggestions for the government in reverse logistics to ensure the growth of the circular economy.To be specific,this study mainly contains the following aspects:First,this study reviews present research progress in reverse logistics management,operation mode,reverse network optimization and evolutionary game theory and its application.Meanwhile,this research discusses status quo of reverse logistics of Chinese iron and steel companies.The study aims at improving previous theories and meeting practical demand.Second,this study analyzes and identifies the key factors influencing reverse logistics construction and operation using the Analytic Network Process with factors collected from social,economic,environmental,governmental,company management and market aspects while considering feedback and interdependence among the factors.Third,the study focuses on decision-making of reverse logistics channel selection.Cooperation between players in reverse logistics are modeled based on evolutionary game theory.Correspondingly,evolution of the three reverse logistics operation channels of self-operation,joint venture,and outsourcing are analyzed.According to evolution pattern of reverse logistics channel,iron and steel companies are suggested to choose self-operation as the prior strategy in reverse logistics activities.Forth,according to the advice of self-operation preference,the study further constructs the reverse logistics network optimization model for practical activities of iron and steel companies.A multi-object mixed integer stochastic programming model is proposed for reverse logistics network optimization.The model considers integration of distribution logistics and reverse logistics network in optimization and considers uncertainty factors such as quantity and quality of scrap steel that makes it to be more realistic.The study provide solution for iron and steel companies in optimization reverse logistics network.The innovations of this study are as follows.First,in terms of scrap reverse logistics,this study applies the Analytic Network Process to analyze the complex factors influencing the operation of reverse logistics to make up shortage of study on scrap recycling in iron and steel industry.Second,this study proposes research scheme of reverse logistics based on evolutionary game theory that break the limitation of application of classic game theory.From a dynamic point of view,we conduct profound analysis of decision-making of reverse logistics channel that broaden the study of reverse logsitics operation channel.Third,regarding the shortage of reverse logistics network optimization methods,a multi-objective network stochastic optimization model is built considering the uncertain demand of the product,recycling quantity and quality while integrating distribution and reverse logistics network that improves network optimization method.Overall,this study improves the deficiency of study on scrap rev erse logistics,expands research area of study on the operation mode and develops reverse logistics network theoretically.For practical application,the research offers decision-making suggestions and policies in reverse logistics development for iron and steel companies and provides efficient suggestions for government to develop circular economy.