A stochastic model for forward-reverse logistics network design under risk

Attention with reverse logistics networks has increased during the last decade since their economic impact has been increasingly important and as environmental legislation has been becoming stricter. In this paper, A multi-period multi-echelon forward-reverse logistics network design under risk model is developed. The proposed network structure consists of three echelons in the forward direction, (suppliers, facilities and distribution centers) and two echelons, in the reverse direction (disassembly, and redistribution centers), first customer zones in which the demands are stochastic and second customer zones in which the demand is assumed to be deterministic, but it may also assumed to be stochastic. The problem is formulated in a stochastic mixed integer linear programming (SMILP) decision making form as a multi-stage stochastic program. The objective is to maximize the total expected profit. (C) 2008 Elsevier Ltd. All rights reserved.