Design of reverse logistics networks for multiproducts, multistates, and multiprocessing alternatives
This chapter proposes a modeling methodology for designing reverse logistics networks. The model aims at determining the location and missions of sites for the recovery of unused products from ultimate consumers, valorization or clean disposal of recovered products, redistribution of reusable materials, and attribution of new or reusable (valorized) products. Valorization activities refer to repair, refurbishing, reassembling, product disassembly for reusable material recovery (cannibalization), and recycling. The proportion of recovered product volumes to orient to valorization and clean disposal activities is not known a priori but is determined according to demand and return volumes, site capacities, and the general anticipated state of recovered product volumes. This model may be used to evaluate the impact of reintegrating valorized products (finished products and spare parts) into current supply chains initially designed only for distribution and maintenance of new products. The chapter discusses key parameters such as the localization and estimation of potential returns and demands for new and reusable (valorized) products, as well as the probability that a returned product be in a specific state, which could lead to one or many processing alternatives (repair, disassembly, clean disposal, etc.). This mathematical model is inspired by the recent healthcare allocation and valorization of the wheelchair policy of the Province of Quebec (Canada), governed and managed by a governmental agency.