Journal
COMPUTERS & OPERATIONS RESEARCH
Volume 34, Issue 2, Pages 417-442Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cor.2005.03.007
Keywords
reverse logistics; remanufacturing; location; uncertainty; stochastic integer programming; decomposition; integer L-shaped
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This paper presents a generic stochastic model for the design of networks comprising both supply and return channels, organized in a closed loop system. Such situations are typical for manufacturing/re-manufacturing type of systems in reverse logistics. The model accounts for a number of alternative scenarios, which may be constructed based on critical levels of design parameters such as demand or returns. We describe a decomposition approach to this model, based on the branch-and-cut procedure known as the integer L-shaped method. Computational results in an illustrative numerical setting show a consistent performance efficiency of the method. Moreover, the stochaslic solution features a significant improvement in terms of average performance over the individual scenario solutions. A modeling and solution methodology as presented here can contribute to the efficient solution of network design models under uncertainty for reverse logistics. (c) 2005 Elsevier Ltd. All rights reserved.
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