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comJournalofChemicalandPharmaceuticalResearch,2014,6(7):1916-1921ISSN:0975-7384CODEN(USA):JCPRC51916Reverselogisticsnetwork:AliteraturereviewTaoYe1*andYinZhenhua21SchoolofInformationEngineering,HangzhouDianziUniversity,Xiasha,Hangzhou,Zhejiang,China2EngineeringDivision,WujiangPolytechnicSchool,Songling,Wujiang,Jiangsu,ChinaABSTRACTThepurposeofthisarticleistoconductareviewofthereverselogisticsnetworkliteratures,especiallythosepublishedeversince2000.
Wehopetofindoutcharacteristicsintheresearchandpossibleopportunitiesforfurtherresearch.
Contentanalysisisappliedinthisarticletoreviewthepublishedliteraturesinbooksandconferenceproceedings,andarticlesobtainedfromelectronicsources.
Mostresearchfocusesonlyonasmallareaofreverselogisticsnetwork.
Manyliteraturesinreverselogisticsnetworkdesignfocusoncasestudy,especiallyonelectricalandelectronicequipmentrecycling.
Manyquantitativemodelshavebeendevelopedforreverselogisticsnetworkdesign.
Reverselogisticsnetworkmodelscanbeclassifiedasclosed-loopnetworkmodel,genericmodel,stochasticmodeland3PLsmodel.
Researchersfocusoncasestudy,quantitymodelandclosed-loopnetworkmodel.
Inparticular,closed-loopnetworkmodelhasbeenreceivingmuchmoreattentionfrom2000.
However,theresearchesonmodelsfor3PLsarerelativelylittle.
Keywords:Reverselogisticsnetwork,Casestudy,QuantitativemodelINTRODUCTIONSustainabilityhasbecomeamajorconcerninthedevelopmentofhumansociety.
Sustainabilityrequirestosolvesomecomplexissuesinvolvingsocial,technicalandlegislativefactors,suchashowtopreventtheenvironmentaldeteriorationcausedbythegenerationofwastes,howtominimizethegenerationofwastesandhowtoenhancethevaluerecoveryfromthewastes.
Reverselogisticsnetworkishelpfultomeetthisrequirementbecauseitsmaintaskistocollectandtransportusedproductsandpackagesbasedonthebalanceofcostandenvironment.
Itcantakeplacethroughtheoriginalforwardchannel,aseparatereversechannelandcombinationsoftheforwardandthereversechannel.
Ontheotherside,goodreverselogisticsnetworkisimportantforfirmstogainmoreprofit.
IntegrationandoptimizationofreverselogisticsnetworkhasbecomeaneffectivewaytokeepandimprovecompetitiveadvantageforHP,GEandIBM[1].
Thepurposeofthisarticleistoprovideareviewoftheresearchofreverselogisticsnetworkeversince2000.
Therestofthearticleisorganizedasfollows.
Inthesecondsectionresearchmethodologyisdiscussed.
Inthethirdsection,theresultofreviewispresentedandthissectionisdividedfurtherintosubsectionstohighlightvariousfactorsthatareimportanttotheresearch.
Inthelastsectionconclusionswithsomethoughtsonfurtherresearcharemade.
EXPERIMENTALSECTIONThemethodofcontentanalysisisappliedinthisliteraturereview.
Asanobservationalresearchmethod,contentanalysisisoftenusedtosystematicallyevaluatethesymboliccontentofallformsofrecordedcommunication.
Thismethodisalsohelpfultoidentifytheliteratureintermsofvariouscategoriesforcreatingresearchopportunities.
Al-MashariandZairiusedittoanalyzetheimplementationofSAPR/3forre-engineeringthesupplychainusingTaoYeandYinZhenhuaJ.
Chem.
Pharm.
Res.
,2014,6(7):1916-19211917enterpriseresourcesystems[2].
ItwasalsousedbyByrdandDavidsontoexaminetheimpactofinformationtechnologyonsupplychainandbyMarascoinareviewofliteratureonthirdpartylogistics[3].
Thereviewisbasedonthepublishedliteraturesinbooksandconferenceproceedings,andarticlesobtainedfromelectronicsourcesincludingGoogleScholar,ScienceDirect,EmeraldInsight,andIndersciencedatabases.
Keywordssuchas"reverselogisticsnetwork","reverselogistics","recycling","remanufacturing","productreturns","productrecovery","end-of-lifeproducts","closed-loopsupplychains"and"greensupplychain"wereusedtofindrelatedliteratures.
LITERATUREREVIEW3.
1OverviewAccordingtothewidelyaccepteddefinitionofreverselogisticsmadebyFleischmann"reverselogisticsnetworkistheprocessofplanning,implementingandcontrollingtheefficient,effectiveinboundflowandstorageofsecondarygoodsandrelatedinformation,oppositetothetraditionalsupplychaindirectionsforthepurposeofrecoveringvalueandproperdisposal",reverselogisticsnetworkcanberegardedastheconfigurationofnodesandthearrangementoflinesinreverselogisticssystem,reverselogisticsnetworkcoversthreemainsub-fields——distributionplanning,inventorycontrol,andproductionplanning[4-6].
Researchonreverselogisticsnetworkhasbeengrowingsincethe1970s.
Mostresearchaboutthestrategiesandmodelsonreverselogisticsnetworkcanbeseeninthepublicationsinandafterthe1980s.
However,effortstosynthesizetheresearchinanintegratedbodyofknowledgeseemcomparativelylimited.
Mostresearchfocusesonlyonasmallareaofreverselogisticsnetwork,suchasnetworkdesign,productionplanningorenvironmentalissues.
Forinstance,astudywascarriedoutfromtheperspectivesofdistributionplanning,inventorycontrolandproductionplanning[4].
Anotherstudy,asareviewofreverselogisticsnetworkliterature,focusedonthetransportationandpackaging,purchasingandenvironmentalaspects[7].
Theinteractionsbetweensustainabilityandsupplychainswasstudiedbyconsideringenvironmentalissuesregardingproductdesign,productlifeextensionandproductrecoveryatend-of-life[8].
Morestudiescanbefoundintheliteraturereviewonreverselogisticsnetworkpublishedbetween1995and2005byfocusingonmanagementoftherecovery,distributionofend-of-lifeproducts,productionplanningandinventorymanagementandsupplychainmanagementissues[9].
Designandoptimizationofreverselogisticsnetworkisamajorfocusintherecentyears.
Thisincludesthenetworkstructure,thenumberoflayers,thetypeofnecessaryfacilitiesaswellasthetechnologyneededtobeemployed.
Theresponsiblepartiesneedtodecidethenumberoffacilitiesrequired,theircapacitiesandtheirmostappropriatelocationsaswell.
Inthedesignandoptimizationofareverselogisticsnetworkseveralissuesshouldbeconsidered:actorsinreverselogisticnetwork,functionstobecarriedoutandtherelationbetweentheforwardandreverselogisticnetwork.
Someresearchershaveproposedseveraldesignprinciplesforreverselogisticnetwork[10-12].
However,theseprincipleswerelimitedincertaincircumstanceandcannotformawidelyacceptedcriterion.
Designprincipleswereputforwardforclosed-looplogisticnetworkaccordingtocharacteristicsofreverselogisticsfromtheperspectivesofeconomics,environmentandlogisticschannel[13].
Theprinciplesincludeselectioncriterionofsuppliers,productionlifecycle(PLC)analysis,productquality,andrecoverypercentage,andsoon.
Table1DifferencesbetweenreverselogisticsnetworkandforwardlogisticnetworkReverseLogisticsNetworkForwardLogisticsNetworkthroughstandardchanneldrivenbyexternalforcedefinitedestinationindefinitedestinationcleardisposalmodeuncertaindisposalmodeforrecyclesuniformpricespricesinfluencedbymanyfactorsspeedisveryimportantspeedissubordinateuniforminventoryvariousinventoriesforvariousproductsproductsexistintheeasy-to-be-managedstagesofthelifecyclerecycledproductsexistincomplicatedstagesdirectnegotiationsamongparticipantsofthesupplychaincomplexandvariantnegotiationprocessreal-timetracingforproductsbeingsaleddifficulttotracehowrecycledproductsaretreatedcanbepredicteduniformlydifficulttobepredictedtransportationisunilateraltomultilateraltransportationismultilateraltounilateralhomogenousqualityofproductsheterogenousqualityofproductsuniformpackagesofproductspackagesofproductsoftendamaged3.
2ComparisonbetweenreverselogisticsnetworkandforwardlogisticnetworkBecauseofthehighersupplyuncertaintyinquality,quantity,timeandsomeotheraspects,reverselogisticsnetworkismuchmorecomplicatedthantraditionalforwardlogisticnetwork.
Regardingsupplychainperformance,Fleischmannpointedoutthedistinctionsbetweenreverselogisticnetworkandforwardlogisticnetwork,i.
e.
recoveryproductshavetobeinspectedandclassificationinreverselogisticswithhigheruncertainty.
TheTaoYeandYinZhenhuaJ.
Chem.
Pharm.
Res.
,2014,6(7):1916-19211918distinctionsshouldbeconsideredindesigningandoptimizingreverselogisticsnetwork[14].
MoredifferencesputforwardbytheresearcherscanbeseeninTable1[15-18].
3.
3CaseStudiesforreverselogisticsnetworkManyresearchershavecarriedoutcasestudiesbecauseareverselogisticsnetworkisusuallycomplicated.
Thecaseswerechosenfromvariousindustriesorproductssuchasbatteryrecycling,paperrecycling,electronicequipment,sandrecyclingandnuclearpower.
.
Avehicleroutingapproachwaspresentedforthetransportofend-of-lifeconsumerelectronicgoodsforrecyclinginSouthKoreatominimizethedistanceoftransportationofend-of-lifegoodscollectedbylocalauthoritiesandmajormanufacturers'distributioncenterstofourregionalrecyclingcenterslocated[19].
Alinearmulti-objectiveoptimizationmodelwasusedtooptimizetheoperationsofboththenuclearpowergenerationandthecorrespondinginducedwastereverselogisticsinChina[20].
Amulti-periodMILPmodelwasestablishedforcarpetrecyclinginEnglandtoanalyzeasetofalternativescenariosidentifiedbythedecisionmakerandprovidedanear-optimalsolutionfornetworkdesign[21].
AnewMILPmodelwasputforwardtooptimizetheinfrastructuredesignandthereversenetworkflowfortherecoveryofelectricalappliancesandcomputersinTaiwan,withcomputationalresultsforthescenariosofdifferentproductreturnratesandoperationconditions[22].
ThereverselogisticsnetworkofanelectronicequipmentremanufacturingfirminAmericawasanalyzed,andamulti-productcapacitatedwarehouselocationMILPwaspresentedandsolvedtoobtainoptimalityfordifferentsupplyanddemandscenarios[23].
AnotherMILPmodelwasestablishedforthemulti-echelonproductrecoverynetworkdesignwhichfocusedontheremanufacturingofacertaintypeofcopyphotocopier[6].
InthisstudyanLPsolverwasalsousedtogettheoptimalsolutionfortheinstancesofsmallproblemsize.
MorecasestudiescanbefoundinTable2.
Table2CasestudiesforreverselogisticsnetworkCaseLiteratureBatteryrecycling[24]Wasteofelectricalandelectronicequipment[5]EOLelectronicandelectronicproducts[25]EOLvehicles[10]Originalequipmentmanufacturers[17]Electronicgoods[19]Paperrecycling[26]EOLcomputerproducts[27]Nuclearpowergeneration[20]Metal-mechaniccompany[14]Carpetrecycling[28]Automotiveindustry[29]Sandrecycling[30]Electronicwaste[31]Wasteofelectricalandelectronicequipment[18]Carpetrecycling[21]Spentbatteries[32]Computersandhomeappliances[22]Electronicequipmentremanufacturingcompany[23]Photocopiers[6]Carpetmaterials[33]Sandrecycling[24]3.
4QuantitativeModelsforreverselogisticsnetworkManyquantitativemodelshavebeenproposedforreverselogisticsnetworkdesignintherecentyears,includingmixedintegerlinearprogramming(MILP)model,mixedintegernonlinearprogramming(MINLP)model,mixedintegergoalprogramming(MIGP)modelandlinearmulti-objectiveprogramming(LMOP)model.
Amulti-objectiveandmulti-periodMILPmodelwasestablishedforreverselogisticnetworkdesignformodularizedproductswhichdeterminesthenumberofexistingforwardflowfacilitiestobeusedandthenumberofdedicatedfacilitiestobesetupforhandlingreturnflows[34].
Amixedintegergoalprogramming(MIGP)modelwasestablishedtodeterminethefacilitylocation,routeandflowofdifferentvarietiesofrecyclablewastepaperinthemulti-item,multi-echelonandmulti-facilityenvironment[26].
AsimulationmodelofareverselogisticsnetworkwasusedtocollectEOLappliances[16].
Withtemporalconsolidationissuesinamultipleplanninghorizon,Minandhiscolleaguesputforwardanonlinearmixedintegerprogrammingmodelandageneticalgorithmtosolvethereverselogisticsprobleminvolvingproductreturnsinothertwoarticles[35].
Anonlinearintegerprogramwasproposedtosolvethemulti-echelon,multicommodityclosedloopnetworkdesignprobleminvolvingproductreturnsinanotherarticleoftheauthors[36].
Alinearmulti-objectiveoptimizationmodelwaspresentedtooptimizetheoperationsofboththenuclearpowergenerationandthecorrespondinginducedwastereverselogistics[37].
TheauthorTaoYeandYinZhenhuaJ.
Chem.
Pharm.
Res.
,2014,6(7):1916-19211919incorporatedfactorssuchastheoperationaldangersinducedinboththepowergenerationandreverselogisticsprocessesinthemodelformulation.
AnMILPmodelwasputforwardtoanalyzetheimpactofproductrecoveryonlogisticsnetworkdesignandaheuristicalgorithmwasappliedtoobtainthesolutionforcaseswithlargeproblemsize[12].
MorequantitativemodelscanbefoundinTable3.
Table3QuantitativemodelsinreverselogisticsnetworkQuantitativemodelLiteratureLinearmulti-objectiveprogramming[20],[37]Mixedintegergoalprogramming[26]Mixedintegerlinearprogramming[38],[39],[25],[40],[11],[41],[42],[43],[44],[45],[30],[34],[21],[46],[4],[22],[23],[6]Mixedintegernonlinearprogramming[47],[35],[36]Amajorissueinthereversedistributionishowtointegrateforwardchannelandreversechannel[4].
Thestructureofreverselogisticsnetworkhasastronginfluenceontheperformanceofforwardlogisticsnetworkandviceversaastheysharealotofresourcessuchastransportandwarehousecapacity.
Separatelydesigningforwardlogisticsandreverselogisticsresultsinsub-optimaldesignswithrespecttocosts,servicelevelsandresponsiveness,sotheintegrationofforwardandreverselogisticsnetworkshasdrawnattentionofmanyresearchers.
Aclosed-loopsupplychain(CLSC)consistsofbothforwardsupplychainandreversesupplychain.
Correspondingly,aclosed-looplogisticnetworkconsistsofbothforwardlogisticnetworkandreverselogisticnetwork.
Bystudyingacaseofphotocopierremanufacturingandacaseofpaperrecycling,Fleischmannpointedoutthatthereispossibilityforcostsavingsifoneundertookanintegratedviewratherthanasequentialdesignoftheforwardandreversedistributionnetworks[4].
Ahybridmethodwasdevelopedtoestablishaclosed-loopsupplychainmodelforspentbatteries.
Themodelincludesatwo-stagefacilitylocationoptimizationproblemandwasappliedunderdifferentscenariosforasteelmakingprocess[32].
Alinearmultiobjectiveprogrammingmodelwasformulatedtooptimizetheoperationsofbothintegratedlogisticsandcorrespondingused-productreverselogisticsinagivengreen-supplychain,withtheconsiderationoftheusedproductreturnratioandcorrespondingsubsidiesfromgovernmental[37].
Agenericstochasticmodelwaspresentedforthedesignofnetworkscomprisingbothsupplyandreturnchannelsinaclosedloopsystem,whichissolvedbytheintegerL-shapedmethod[43].
Atwo(0,1)levelmixedintegerprogrammingmodelofanuncapacitatedfacilitylocationwasproposed,inwhichsimultaneouslyforwardandreverseflowsandtheirmutualinteractionswereconsidered[44].
Thelogisticsnetworkdesignforend-of-leasecomputerproductswasdiscussedandadeterminedprogrammingmodelforsystematicallymanagingforwardandreverseslogisticsflowswasdeveloped[27].
Anintegratedmodelforsupplychainmanagementwasproposed,wheretheoperationofthereversechainhadbeenbuiltbasedontheexistingprocessesoftheforwardchain,andthismodelhadbeenvalidatedinacompanyfromthemetal-mechanicsector[14].
Afacilitylocation-allocationmodelforredesigningclosed-loopservicenetworkofacomputermanufacturerwasdeveloped.
Themodelconsideredthepossibilityofthenetworkspanningacrossseveralcountriesandmulti-periodplanninghorizons[48].
Aclosedloopmixedintegerlinearprogrammingmodelwasdevelopedtodeterminerawmateriallevel,productionlevel,distributionandinventorylevel,disposallevel,andrecyclinglevelatdifferentfacilitieswiththeobjectiveofminimizingthetotalsupplychaincost[38].
Manyreverselogisticnetworkmodelshaveappearedincasestudies,sotheylackgeneralityindifferentsituations.
Someresearchershavetriedtoproposegeneralizedmodels.
Ageneralquantitativemodelwaspresentedforproductrecovery,inwhichrepairingandremanufacturingwereconsideredsimultaneously[42].
Anothergeneralizedmodelofreverselogisticsnetworkwasestablishedasamixedintegerformulation,wherecapacitylimits,multi-productmanagementanduncertaintyonproductdemandsandreturnswereconsidered[45].
Fleischmannandhiscolleaguesalsoputforwardsuchamodelforthedesignofreverselogisticsnetworks,andpresentedageneralizedfacilitylocationmodel(MILP)tointegratetheforwardandreversechainswithabalanceconstraintthatthetotalreturnofeachfactorycannotexceeditstotalproduction[4].
Uncertaintyisanotherimportantcharacteristicofproductrecoverybecausethequantityandthequalityofusedproductsaremoredifficulttocontrolandestimateinreverseflow.
Someresearchershaveaddressedthisissueunderstochasticenvironment.
Aperiodicreviewmodelwasestablishedforproductrecoveryinstochasticremanufacturingsystemswithmultiplereuseoptions[49].
Astochasticprogrammingapproachwaspresentedtogetherwithadeterminedlocationmodelforproductrecoverynetworkdesigntodealwithsomeuncertainties.
However,thisapproachcanonlysolveasmallnumberofscenariosoftheuncertainproblemparameters[30].
Amulti-periodandmulti-echelonforward-reverselogisticsnetworkdesignriskmodelwasdevelopedbyEl-Sayedandhiscolleagues.
Themodelwasformulatedasastochasticmixedintegerlinearprogramming(SMILP)decisionmakingform.
Butitcanonlybeusedforsingleitemandsingleproductproblems[11].
AtwostagestochasticprogrammingmodelwasputforwardbyLeeandhisTaoYeandYinZhenhuaJ.
Chem.
Pharm.
Res.
,2014,6(7):1916-19211920colleagues.
Theyintegratedthesampleaverageapproximationmethodwithaheuristicalgorithmbasedonsystemanalysis[50].
Someresearchershaveusedquantitativemodelstostudyreversenetworkconcerningthird-partylogistics(3PLs).
Thereasonisprobablythattherearemajoradvantagesassociatedwith3PLsprovidershandlingthereverselogisticsforcompanies.
First,the3PLsprovidershaveexpertise,sophisticatedlogisticnetworks,ITtechnologyandthecapabilitytooperatesystemsefficiently[51].
Second,thesameassets(investment)ofthird-partyproviderscanbeusedinvariouscontractualrelationshipsandthusprovideeconomiesofscalewhenemployed[52].
Rupnowandotherresearchersshowedthemultiplebenefitsthatcompaniesusing3PLsservicetypicallyexperience[1].
Themostfrequentlymentionedadvantagesarecostreduction,improvedexpertiseandaccesstodata,improvedoperationandcustomerservicesandtheabilitytofocusoncorecompetenciesandflexibility.
Amixedintegernonlinearprogrammingmodelwasappliedforthedesignofadynamicintegrateddistributionnetworkfor3PLs.
Inordertohandletherealisticallysizedproblem,ageneticalgorithmwaspresented[47].
Aclosedloopreverselogisticsnetworkproblemwasestablishedinwhichmanufacturerstookadvantageofa3PLsystemforthepost-saleservice[40].
Amixed-integerprogrammingmodelandageneticalgorithmwereputforwardtosolvethereverselogisticsprobleminvolvingthelocationandallocationofrepairfacilitiesfor3PLs[41].
CONCLUSIONThispapersummarizestheresearchmethodologyforreverselogisticsnetworkascasestudyandquantityanalysis,andclassifiesreverselogisticsnetworkmodelsintofourmajorcategories:closed-loop,genericmodel,stochasticmodeland3PLs.
Ourreviewshowsthatcasestudyforreverselogisticsnetworkhaskeptahighproportioninthelastdecadewhilequantitymodelandclosed-loopnetworkhavereceivedgrowingattention.
Theproducttypescoveredincasestudyarestillnotextensiveandlimitedinseveralsimilarproducts.
Itisachallengetoextendcasestudyforreverselogisticsnetworktomostproducts.
Moreover,thegeneralityofmodelforreverselogisticsnetworkisnotsatisfactoryastherearealotofdifferentsituationsineachlogisticnetwork.
Inaddition,reverselogisticsnetworkdesignfor3PLshasnotfullybeenaddressed.
AcknowledgementsThisresearchwasfinanciallysupportedbyResearchStartProjectofHangzhouDianziUniversity(KYS035609044).
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