Designing Reverse Logistics Network For Auto Pails Sector

Due to arising concerns on environmental issues, reverse logistics (RL) hasattracted much attention from scholars and practitioners gradually. Along with therapid growth of China’s automobile and auto parts sectors, the problems aboutscrapped-car recycling and used auto parts rcmanufacturing come to the front whichleading to resource waste and environmental pollution. The implementation of RL isconducive to the development of circular economy and structural transformation ofthe economy. As for enterprises, RL implementation would increase the efficicncy ofresource coiisumptioii，reinforce the integration of inner and outer resources andpropel business process rcengineering. Based on literature review, this studyaddresses two issues at strategic and tactical levels: facilities layout and operationplan. The purpose of this study is to propose a basic framework for post-study inwhich the traits of multi-product, multi-echelon, multi-period and uncertainty shouldbe included.Frist，this study develops an integer non-linear programming model for RLnetwork design of auto parts scctor under demand growth. It assumes that facilitieslocations are pre-determined, then to optimize the quantities of added-on modulesreacting to demand growth. Two objectives are selected: maximizing the total profitand minimizing the negative environmental impact.Second, this study also addresses the problem of operation planning underseveral demand scenarios. Taking modules maintenance, vacation and module switchinto account, the objectives of the model is to obtain a production plan for one yearand minimize the total cost.