Reverse Logistics Network Design For End Of Life Automobile

Over the past decade, China’s automobile penetration enjoys a rapid increase. The automobile inventory of our country has reached121million by the end of2012. The life of automobile is between10and13years. Huge automobile inventory means the quantity of end-of-life automobile is soaring at the same time. The social and environmental issues brought by the increase of end-of-life automobile are increasing. The revcovery rate of EOL aumobile in China is4.26%, whichn is far lower than the level of6%～8%in developed country. In America the automobile inventory is285million, while the share of automobile parts remanufacture market reaches$40billion. In2009, according to the China Association of Automobile Manufacturers’ data, the total output value of automobile remanufacture is less than25billion yuan. There is a huge space for development of EOL aumobiles recycling and remanufacture industry.Reverse logistics network is the basis of the implement of EOL automobile collection/remanufacture/redistribution process. A reasonable RL network can help to increase the recycle rate and recover rate. This paper aimes to study the structure design of EOL reverse logistics network. With the decision of node location/number/scale, the site location result is obtained and so is the car flow between each node in the network.First, on the basis of relevant theory of EOL automobile reverse network, this paper analyse the process of reverse logistics network in developed auto manufacturing coutry. The present statd of EOL industry in our country is also presented. Considering the process of re-distribution of remanufactured products, this paper proposed a framework of EOL reverse logistic network. The opertating mode, structure and infrastruction of the network are planned. Then, a MILP modle is established. The objective of this model is to maximinze the intrest of the whole network. It also can solve the flow of EOL automobile between customer and dismantling center and others flows in the network. Fnally, it takes Liaoning province for example. The data of quantity of EOL automobile in each city is collected. The reverse network in Liaoning is obtained, with the number of dismantling centers and the flow between each center. And the validity of the model is verified.The result of this paper is also suitable for the design of reverse network for EOL automobile in other provinces and even across the country. It provides a reference for the development of EOL automobile recycling and remanufacturing industry.