Optimization Model for Integrated Logistics Network Design in Green Manufacturing System

Previous researchers have developed ways of managing forward-oriented logistics network. In this study, The design of integrated logistics network is analyzed for green manufacturing system. An optimization model is proposed for the design of integrated logistics network handling product returns on the base of 0-1 mixed integer linear programming approach. It considers storing, reprocessing, remanufacturing facilities and new module suppliers in the network. According to the model, the number of various facilities, their locations and the allocation of the corresponding logistics flows can be decided upon and set up appropriate logistics network structure in order to minimize the total cost of investment and operation. This study contemplates the integrated logistics network with the multi-product, single-period and facilities with limited capability location-allocation problem, and also considers the logistics distribution of remanufactured products and new products which can not be replaced mutually in the forward logistics. The model is tested on an illustrative case.