Isabel Gomes

The increase focus of companies in clients’ satisfaction, independently of the market they operate in, results from a growing degree of consumers expectations. To fulfill such increase, companies have to arm themselves with the correct internal capabilities, achieving not only efficacy in the satisfaction of each customer, but also efficiency, by operating at the lower possible cost. One of those internal capabilities is the logistics network, which is representing, more and more, a great challenge for companies, given the complexity of the variables that compose it. In this paper, an optimization model is developed that contemplates simultaneously the design and planning of supply chains with reversed flows, through a multi-period and a multi-product network. The proposed model acts as a support tool for the decisions to be made in a real case of a Portuguese telecommunications company, in order to optimize its logistics network.

The European Union directive for electric and electronic waste, published in 2003, enforced all European countries to meet some targets concerning the recycling and recovery of these products. This directive was transposed to the Portuguese legislation in 2004. Following this, a group of EEE producers set up an organization (Amb3e) whose mission was to design and manage a nationwide recovery network for WEEE, which will be the subject matter of this work. A generic MILP model is proposed to represent this network, which is applied to its design and planning, where the best locations for collection and sorting centres are chosen simultaneously with the definition of a tactical network planning. Several analyses are performed to provide further insights regarding the selection of these alternative locations. The results gave support to the company strategic expansion plans for a high number of centres to be opened and to their location near the major WEEE sources.

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The increase in societal awareness towards environmental issues has accrued the responsibility of goods producers, which at present came to encompass the entire product life cycle. Recently, the efficient design and operation of supply chains with return flows have, in particular, become a major challenge for many companies, given the high number of factors involved and their intricate interactions. In this paper, a multi-period and multi-product network model for the simultaneous design and planning of supply chains with reverse flows is proposed. A graph approach based on the conventional concepts of nodes and arcs is employed to model the network, where it is assumed that any network node is a transformation point of inbound into outbound flows, which in the limit may not differ, and that related arcs describe products flows along the chain. In here the formulation of time adopts a management perspective, i.e., the strategic design of the supply chain is dealt simultaneously with the tactical planning of its operation, which covers supply, production, storage and distribution. An example based on a Portuguese industry case is studied in order to validate both the applicability and adequacy of the model to real world problems.

The rapid growth of electric and electronic equipment waste (WEEE) transformed this waste stream into a worldwide problem. The Directive 2002/96/EC on electrical and electronic waste aims at the reduction of the environmental impact of WEEE, encouraging end-of-life management, eco design, life cycle analyses and extended producer responsibility. However, this legislation may not produce the results the legislator aimed for. In this work we analyse the environmental impact of a WEEE recovery network in the Portuguese context. With this aim, a model, previously developed by the authors for the optimal design of this network using economic indicators (Salema, 2007), was now adapted to design the network subjected to the minimization of environmental performance indices. The original mathematical formulation was found to be flexible and easily adapted to the two types of indices and the major differences between the optimal network configurations obtained, were identified and discussed.

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In this paper, a strategic location-allocation model is developed for the simultaneous design of forward and reverse supply chains. Strategic decisions such as network design are accounted for together with tactical decisions, namely, production, storage and distribution planning. The integration between strategic and tactical decisions is achieved by considering two interconnected time scales: a macro and a micro time. At macro level, the supply chain is designed in order to account for the existing demands and returns, whose satisfaction is planned simultaneously at the micro level where tactical decisions are taken. A Mixed Integer Linear Programming formulation is obtained which is solved to optimality using standard Branch & Bound techniques. Finally, the model accuracy and applicability is illustrated through the resolution of a case study.

The Portuguese directive 230/2004 established December 2006 as the dead-line for the legal targets of EEE recovery to be achieved. The EEE producers working in Portugal set up an organization whose mission is to design and manage this recovery network. A MILP model was previously developed to optimize the network design where, by considering EEE sources and recycling facilities locations as known, sorting centre locations were determined together with the planning of collection and sorting activities. In the present paper, the network planned by the Portuguese EEE organization is compared with the results provided by this early model. In addition, and taking into account new organizational objectives, where collecting and sorting entities should independently perform the associated activities, the developed model is further extended, in order to account for a new network level related to the collection and sorting activities, and the previous network is retrofitted.

An European directive established that all EU countries must have, until the end of 2006, a recovery network for the electric and electronic equipment waste (WEEE). In Portugal, a group of producers formed a non-profit organization to design and manage this waste now. In this work, a model developed previously by the authors to design and plan a generic WEEE network is presented and applied to the Portuguese case. The results obtained are discussed and compared with the network that is currently operating.

In this work, the design of supply chains with reverse flows is studied in a multi-objective context. A MILP model is developed for the optimization of the supply chain structures where both environmental impacts and costs are considered. An optimal Pareto front is obtained that plays an important role in evaluating the best locations of all the entities in the supply chain while accounting for the global supply chain environmental impacts. A study based on a Portuguese glass industry is presented to corroborate both the applicability and the adequacy of the model.

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All European countries are building structures to support collection and recovery of electric and electronic waste (WEEE). In this work, the study of a Portuguese recovery network is presented. A MILP model is developed in order to determine the best WEEE network structure as well as the associated optimal plan. Several different analyses are performed.

In this work the design of a reverse distribution network is studied. Most of the proposed models on the subject are case based and, for that reason, they lack generality. In this paper we try to overcome this limitation and a generalized model is proposed. It contemplates the design of a generic reverse logistics network where capacity limits, multi-product management and uncertainty on product demands and returns are considered. A mixed integer formulation is developed which is solved using standard B&B techniques. The model is applied to an illustrative case.

This paper addresses the design and planning of supply chains with product return. A graph approach is used as the modelling methodology. Commonly, the application of graph approaches to the design of supply chains, considers nodes as chain entities and arcs as connections between them. These assumptions are extended in the present work where products may also be associated with both nodes and arcs. A multi-product network formulation is obtained which is further generalised to consider the modelling of time, resulting in a dynamic multi-product network model with product return. This generalisation assumes that any node is a transformation point which allows inbound and outbound products to differ. Considering four different kinds of entities (factories, warehouses, sorting centres and customers), proper functions are defined for each one: production, postponement, usage and selection. An example, base on a Portuguese industry case, is applied in order to corroborate the model applicability and adequacy to real world problems.

In this paper, an MILP formulation is proposed for the design of a reverse logistics network based on a warehouse location–allocation model, which optimizes, simultaneously, the forward and reverse networks. A single product model with unlimited capacity is first defined. Subsequently, the model is extended to a multi-product capacitated recovery network model, where capacity limitations and a multi-product system can be considered. The proposed model is compared to published work in the field, where different model assumptions have been proposed. Two cases are described so as to gain a better insight into the model and allow a comparative analysis.

A general model for the design and planning of closed-loop supply chains is proposed. The model is both strategic and tactical in nature, containing two levels of decisions: the location of facilities and the planning of production, storage and distribution. Its mathematical formulation is solved using a standard Branch and Bound technique. The model applicability and accuracy are studied on a modified version of an already published case study.

A multi-product model for the design of global supply chains with reverse flows is proposed. Two levels of decisions are considered, one strategic and one tactical. The first is modelled through a macro perspective of time where the determination of the network structure and flows is accomplished. At tactical level, a micro perspective of time is considered, where production planning and inventory management are addressed in detail. A mixed integer linear programming formulation is developed which is solved with standard Branch and Bound techniques. The model accuracy and suitability are studied using a case study.

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.

In recent years much attention has been given to global supply chains. However, the emphasis has been on forward chains, with reverse flows been insufficiently studied. In this work, we study closed loop supply chains and analyse the impact caused by the introduction of new facility sites into an already existing supply chain. The model considers both strategic and tactical decisions allowing for the design of a global supply chain with reverse flows. The impact of the network redesign is analysed and the associated costs calculated. The obtained MILP is solved using a standard Branch and Bound solver. The results obtained prove that the proposed model handles satisfactorily the network redesign problem.

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