Dynamic network design model with reverse flows

Citation:
Salema, Maria Isabel Gomes, A. P. Barbosa-Póvoa, and Augusto Q. Novais. "Dynamic network design model with reverse flows." In POMS 16th Annual Conference, 19. Vol. 4643. Chicago, USA, 2005.

Abstract:

Much attention is currently given to the study of supply chains. Most studies are, however, only concerned with forward chains, rendering reverse chains a field insufficiently covered. Few optimization models addressing either the design of reverse networks or the simultaneous design of forward and reverse networks have been presented. We propose a MILP model for the design and planning of an integrated forward and reverse chain. While minimizing cost, the network structure is defined simultaneously with production and storage planning. Dynamic aspects are accounted for using a two-time scale, fully interconnected structure, where at a macro time the network design is performed and at a micro time the planning is optimised. The deterministic model is extended and a scenario approach is applied to account for uncertainties in demand and return of products. A case study is solved and a common structure to all scenarios is obtained, while scenario dependent policies are defined for distribution, production and storage. The model generality is corroborated with good performance results.

Notes:

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