Reverse logistics network design: a conceptual framework for decision making

Abstract

Reverse logistics play a significantly increased role in supply chains. Producers are incorporating reverse logistics into their supply chain design because of governmental legislation, economic benefits from product recovery, and customers' demands for better environmental practices. Motivated producers face two main challenges in reverse logistics network design: (1) how do you build product recovery activities into traditional forward logistics networks? and (2) how do you manage the impact of uncertainty in the reverse logistics supply chain? Moreover, producers need to consider many tradeoffs leading to efficient network design. Published case studies have discussed these tradeoffs, and we describe a framework to evaluate these tradeoff considerations. We then apply the framework to three new case studies: medical device refurbishing, municipal e‐waste recycling, and carpet fibre recycling.

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