IIM  Vol.6 No.3 , May 2014
Literature Review on Network Design Problems in Closed Loop and Reverse Supply Chains
ABSTRACT

The productivity of an organization is very much affected by non-value adding activity like logistics, which moves the resources from suppliers to factory, raw materials/semi-finished items within the factory and finished goods from factory to customers via a designated distribution channel called as forward logistics. In some cases, parts of the products such as automobiles, computers, cameras, mobile phones, washing machines, refrigerators, garments, footwear and empty glass bottles of beverages, etc. will be brought back to the factories as a product recovery strategy through reverse logistics network which is integrated in a sustainable closed loop supply chain network. So, it is highly essential to optimize the movement of the items in the reverse logistics network. This paper gives a comprehensive review of literature of the design of networks for the reverse logistics as well as for the reverse logistics coupled with forward logistics. The contributions of the researchers are classified into nine categories based on the methods used to design the logistics network.


Cite this paper
Aravendan, M. and Panneerselvam, R. (2014) Literature Review on Network Design Problems in Closed Loop and Reverse Supply Chains. Intelligent Information Management, 6, 104-117. doi: 10.4236/iim.2014.63012.
References
[1]   Krikke, H., Ruwaardz, J.B. and Wassenhove, L.N.V. (2003) Concurrent Product and Closed-Loop Supply Chain Design with an Application to Refrigerators. International Journal of Production Research, 41, 3689-3719.
http://dx.doi.org/10.1080/0020754031000120087

[2]   Schultmann, F., Zumkeller, M. and Rentz, O. (2006) Modeling Reverse Logistic Tasks within Closed-Loop Supply Chains: An Example from the Automotive Industry. European Journal of Operational Research, 171, 1033-1050.
http://dx.doi.org/10.1016/j.ejor.2005.01.016

[3]   Salema, MI., Povoa, APB. and Novais, AQ. (2006) A Warehouse-Based Design Model for Reverse Logistics. Journal of the Operational Research Society, 57, 615-629.
http://dx.doi.org/10.1057/palgrave.jors.2602035

[4]   Savaskan, R.C. and Wassanhove, L.N.V. (2006) Reverse Channel Design: The Case of Competing Retailers. Management Science, 52, 1-14.
http://dx.doi.org/10.1287/mnsc.1050.0454

[5]   Salema, M.I.G., Povoa, A.P.B. and Novais, A.Q. (2007) An Optimization Model for the Design of a Capacitated Multi-Product Reverse Logistics Network with Uncertainty. European Journal of Operational Research, 179, 1063-1077.
http://dx.doi.org/10.1016/j.ejor.2005.05.032

[6]   Ondemir, O. and Gupta, S.M. (2008) Selection of Collection Centers for Reverse Logistic Networks. Northeast Decision Sciences Institute Proceedings, Newyork, 28-30 March 2008, 592-596.

[7]   Mansour, S. and Zarei, M. (2008) A Multi-Period Reverse Logistics Optimization Model for End-of-Life Vehicles Recovery Based on EU Directive. International Journal of Computer Integrated Manufacturing, 21, 764-777.
http://dx.doi.org/10.1080/09511920701685325

[8]   Demirel, N.O. and Gökçen, H. (2008) A Mixed Integer Programming Model for Remanufacturing in Reverse Logistics Environment. International Journal of Advanced Manufacturing Technology, 39, 1197-1206.
http://dx.doi.org/10.1007/s00170-007-1290-7

[9]   Lashkari, R.S. and Zhang, H. (2008) Modeling and Analysis of a Reverse Supply Chain Network for Lead-Acid Battery Manufacturing. Operations and Supply Chain Management, 1, 43-56.

[10]   Barker, T.J. and Zabinsky, Z.B. (2008) Reverse Logistics Network Design: A Framework for Decision Making. Proceedings of the 2008 Industrial Engineering Research Conference, Vancouver, B.C., 7-21 May 2008, 1290-1295.

[11]   Reynaldo, C.R. and Ertel, J. (2009) Reverse Logistics Network Design for the Collection of End-of-Life Vehicles in Mexico. European Journal of Operational Research, 196, 930-939.
http://dx.doi.org/10.1016/j.ejor.2008.04.041

[12]   Kannan, G., Pokharel, S. and Sasi, Kumar, P. (2009) A Hybrid Approach Using ISM and Fuzzy TOPSIS for the Selection of Reverse Logistics Provider. Resources, Conservation and Recycling, 54, 28-36.
http://dx.doi.org/10.1016/j.resconrec.2009.06.004

[13]   Mutha, A. and Pokharel, S. (2009) Strategic Network Design for Reverse Logistics and Remanufacturing Using New and Old Product Modules. Computers & Industrial Engineering, 56, 334-346.
http://dx.doi.org/10.1016/j.cie.2008.06.006

[14]   El-Sayed, M., Afia, N. and El-Kharbotly, A. (2010) A Stochastic Model for Forward-Reverse Logistics Network Design under Risk. Computers & Industrial Engineering, 58, 423-431.
http://dx.doi.org/10.1016/j.cie.2008.09.040

[15]   Dahel, N.E. (2010) Modeling Supply Chain Network Design and Product Recovery Planning under Uncertainty. Northeast Decision Sciences Institute Proceedings, Virginia, 26-28 March 2010, 714-719.

[16]   Wang, H.F. and Hsu, H.W. (2010) Resolution of an Uncertain Closed-Loop Logistics Model: An Application to Fuzzy Linear Programs with Risk Analysis. Journal of Environmental Management, 91, 2148-2162.
http://dx.doi.org/10.1016/j.jenvman.2010.05.009

[17]   Zhang, Y.M., Huang, G.H. and Heb, L. (2011) An Inexact Reverse Logistics Model for Municipal Solid Waste Management Systems. Journal of Environmental Management, 92, 522-530.
http://dx.doi.org/10.1016/j.jenvman.2010.09.011

[18]   Pishvaee, M.S., Rabbani, M. and Torabi, S.A. (2011) A Robust Optimization Approach to Closed-Loop Supply Chain Network Design under Uncertainty. Applied Mathematical Modelling, 35, 637-649.
http://dx.doi.org/10.1016/j.apm.2010.07.013

[19]   Liao, T.Y. and Rachmat, A. (2011) A Multi-Product Reverse Logistics Model for Third Party Logistics. International Conference on Modeling, Simulation and Control, IPCSIT, IACSIT Press, Singapore.

[20]   Xanthopoulos, A., Vlachos, D. and Iakovou, E. (2011) Optimal Sourcing Decisions for Unreliable Reverse Supply Chains. Asia-Pacific Journal of Operational Research, 28, 125-146.
http://dx.doi.org/10.1142/S0217595911003090

[21]   Khajavi, L.T., Seyed-Hosseini, S.M. and Makui, A. (2011) An Integrated Forward/Reverse Logistics Network Optimization Model for Multi-Stage Capacitated Supply Chain. iBusiness, 3, 229-235.

[22]   Das, K. and Chowdhury, A.H. (2011) Designing a Reverse Logistics Network for Optimal Collection, Recovery and Quality Based Product-Mix Planning. International Journal of Production Economics, 135, 209-221.
http://dx.doi.org/10.1016/j.ijpe.2011.07.010

[23]   Pochampally, K.K. and Gupta, S.M. (2012) Use of Linear Physical Programming and Bayesian Updating for Design Issues in Reverse Logistics. International Journal of Production Research, 50, 1349-1359.
http://dx.doi.org/10.1080/00207543.2011.571933

[24]   Piplani, R. and Saraswat, A. (2012) Robust Optimization Approach to the Design of Service Networks for Reverse Logistics. International Journal of Production Research, 50, 1424-1437.
http://dx.doi.org/10.1080/00207543.2011.571942

[25]   Das, K. (2012) Integrating Reverse Logistics into the Strategic Planning of a Supply Chain. International Journal of Production Research, 50, 1438-1456.
http://dx.doi.org/10.1080/00207543.2011.571944

[26]   Nenes, G. and Nikolaidis, Y. (2012) A Multi-Period Model for Managing Used Product Returns. International Journal of Production Research, 50, 1360-1376.
http://dx.doi.org/10.1080/00207543.2011.609650

[27]   Ozkir, V. and Basligil, H. (2012) Modelling Product-Recovery Processes in Closed-Loop Supply-Chain Network Design. International Journal of Production Research, 50, 2218-2233.
http://dx.doi.org/10.1080/00207543.2011.575092

[28]   Alumur, S.A., Nickel, S., Gama, F.S.D. and Verter, V. (2012) Multi-Period Reverse Logistics Network Design. European Journal of Operational Research, 220, 67-78.
http://dx.doi.org/10.1016/j.ejor.2011.12.045

[29]   Mahmoudi, H., Fazlollahtabar, H. and Mahdavi, I. (2013) Mathematical Modeling for Minimizing Costs in a Multilayer Multi-Product Reverse Supply Chain. Industrial Engineering & Management, 2, 1-6.

[30]   Donmez, I. and Turkay, M. (2013) Design of Reverse Logistics Network for Waste Batteries with an Application in Turkey. Chemical Engineering Transactions, 35, 1393-1398.

[31]   Ramezani, M., Bashiri, M. and Moghaddam, R.T. (2013) A New Multi-Objective Stochastic Model for a Forward/Reverse Logistic Network Design with Responsiveness and Quality Level. Applied Mathematical Modeling, 37, 328-344. http://dx.doi.org/10.1016/j.apm.2012.02.032

[32]   Keyvanshokooh, E., Fattahi, M., Hosseini, S.M.S. and Moghaddam, R.T. (2013) A Dynamic Pricing Approach for Returned Products in Integrated Forward/Reverse Logistics Network Design. Applied Mathematical Modeling, 37, 10182-10202.
http://dx.doi.org/10.1016/j.apm.2013.05.042

[33]   Vahdani, B., Mogaddham, R.T. and Jolai, F. (2013) Reliable Design of a Logistics Network under Uncertainty: A Fuzzy Possibilistic-Queuing Model. Applied Mathematical Modeling, 37, 3254-3268.
http://dx.doi.org/10.1016/j.apm.2012.07.021

[34]   Hafeti, S.M. and Jolai, F. (2013) Robust and Reliable Forward-Reverse Logistics Network Design under Demand Uncertainty and Facility Disruptions. Applied Mathematical Modeling, 38, 9-10.

[35]   Amin, S.H. and Zhang, G.Q. (2013) A Multi-Objective Facility Location Model for Closed Loop Supply Chain Net-work under Uncertain Demand and Return. Applied Mathematical Modeling, 37, 4165-4176.
http://dx.doi.org/10.1016/j.apm.2012.09.039

[36]   Cardoso, S.R., Barbosa-Póvoa, A.P.F.D. and Relvas, S. (2013) Design and Planning of Supply Chains with Integration of Reverse Logistics Activities under Demand Uncertainty. European Journal of Operational Research, 226, 436-451.
http://dx.doi.org/10.1016/j.ejor.2012.11.035

[37]   Lizarazo, E.H.A., Torres, J.R.M. and Franco, E.G. (2013) Modeling Reverse Logistics Process in the Agro-Industrial Sector: The Case of the Palm Oil Supply Chain. Applied Mathematical Modeling, 37, 9652-9664.
http://dx.doi.org/10.1016/j.apm.2013.05.015

[38]   Mahmoudzadeh, M., Mansour, S. and Karimi, B. (2013) To Develop a Third Party Reverse Logistics Network for End-of-Life Vehicles in Iran. Resources, Conservation and Recycling, 78, 1-14.
http://dx.doi.org/10.1016/j.resconrec.2013.06.006

[39]   De Rosa, V., Gebhard, M., Hartmann, E. and Wollenweber, J. (2013) Robust Sustainable Bi-Directional Logistics Net-work Design under Uncertainty. International Journal of Production Economics, 145, 184-198.
http://dx.doi.org/10.1016/j.ijpe.2013.04.033

[40]   Ozceylan, E., Paksoy, T. and Bektas, T. (2014) Modeling and Optimizing the Integrated Problem of Closed-Loop Supply Chain Network Design and Disassembly Line Balancing. Transportation Research Part E, 61,142-164.
http://dx.doi.org/10.1016/j.tre.2013.11.001

[41]   Salema, M.I.G., Povoa, A.P.B. and Novais, A.Q. (2009) A Strategic and Tactical Model for Closed-Loop Supply Chains. OR Spectrum, 31, 573-599.
http://dx.doi.org/10.1007/s00291-008-0160-5

[42]   Chen, H.K., Chou, H.W. and Chiu, Y.C. (2007) On the Modeling and Solution Algorithm for the Reverse Logistics Recycling Flow Equilibrium Problem. Transportation Research Part C, 15, 218-234.
http://dx.doi.org/10.1016/j.trc.2007.05.001

[43]   Alshamrani, A., Mathurb, K. and Balloub, R.H. (2007) Reverse Logistics: Simultaneous Design of Delivery Routes and Returns Strategies. Computers & Operations Research, 34, 595-619.
http://dx.doi.org/10.1016/j.cor.2005.03.015

[44]   Lu, Z. and Bostel, N. (2007) A Facility Location Model for Logistics Systems Including Reverse Flows: The Case of Remanufacturing Activities. Computers & Operations Research, 34, 299-323.
http://dx.doi.org/10.1016/j.cor.2005.03.002

[45]   Du, F. and Evans, G.W. (2008) A Bi-Objective Reverse Logistics Network Analysis for Post-Sale Service. Computers & Operations Research, 35, 2617-2634.
http://dx.doi.org/10.1016/j.cor.2006.12.020

[46]   Lee, D.H. and Dong, M. (2008) A Heuristic Approach to Logistics Network Design for End-of-Lease Computer Products Recovery. Transportation Research Part E, 44, 455-474.
http://dx.doi.org/10.1016/j.tre.2006.11.003

[47]   Wollenweber, J. (2008) A Multi-Stage Facility Location Problem with Staircase Costs and Splitting of Commodities: Model, Heuristic Approach and Application. OR Spectrum, 30, 655-673.
http://dx.doi.org/10.1007/s00291-007-0114-3

[48]   Pishvaee, M.S., Farahani, R.Z. and Dullaert, W. (2010) A Memetic Algorithm for Bi-Objective Integrated Forward/Reverse Logistics Network Design. Computers & Operations Research, 37, 1100-1112.
http://dx.doi.org/10.1016/j.cor.2009.09.018

[49]   Pishvaee, M.S. and Torabi, S.A. (2010) A Possibilistic Programming Approach for Closed-Loop Supply Chain Net-work Design under Uncertainty. Fuzzy Sets and Systems, 161, 2668-2683.
http://dx.doi.org/10.1016/j.fss.2010.04.010

[50]   Wang, H.F. and Hsu, H.W. (2010) A Closed-Loop Logistic Model with a Spanning-Tree Based Genetic Algorithm. Computers & Operations Research, 37, 376-389.
http://dx.doi.org/10.1016/j.cor.2009.06.001

[51]   Eskandarpur, M., Nikbakhsh, E. and Zegordi, S.H. (2013) Variable Neighborhood Search for the Bi-Objective Post Sales Network Design Problem: A Fitness Landscape Analysis. Computers & Operations Research, in press.
http://dx.doi.org/10.1016/j.cor.2013.06.002

[52]   Eskandarpur, M., Zegordi, S.H. and Nikbakhsh, E. (2013) A Parallel Variable Neighborhood Search for the Multi-Objective Sustainable Post Sales Network Design Problem. International Journal of Production Economics, 145, 117-131.
http://dx.doi.org/10.1016/j.ijpe.2012.10.013

[53]   Devika, K., Jafarian, A. and Nourbakhash, V. (2014) Designing a Sustainable Closed-Loop Supply Chain Network Based on Triple Bottom Line Approach: A Comparison of Metaheuristics Hybridization Techniques. European Journal of Operational Research, 235, 594-615.
http://dx.doi.org/10.1016/j.ejor.2013.12.032

[54]   Ko, H.J. and Evans, G.W. (2007) A Genetic Algorithm-Based Heuristic for the Dynamic Integrated Forward/Reverse Logistics Network for 3PLs. Computers & Operations Research, 34, 346-366.
http://dx.doi.org/10.1016/j.cor.2005.03.004

[55]   Min, H., Ko, H.J. and James, R. (2008) The Dynamic Design of a Reverse Logistics Network from the Perspective of Third-Party Logistics Service Providers. International Journal of Production Economics, 113, 176-192.
http://dx.doi.org/10.1016/j.ijpe.2007.01.017

[56]   Lee, C.K.M. and Chan, T.M. (2009) Development of RFID-Based Reverse Logistics System. Expert Systems with Applications, 36, 9299-9307.
http://dx.doi.org/10.1016/j.eswa.2008.12.002

[57]   Lee, J.E., Gen, M. and Rhee, K.G. (2009) Network Model and Optimization of Reverse Logistics by Hybrid Genetic Algorithm. Computers & Industrial Engineering, 56, 951-964.
http://dx.doi.org/10.1016/j.cie.2008.09.021

[58]   Fakhrzad, M.B. and Moobed, M. (2010) A GA Model Development for Decision Making under Reverse Logistics. International Journal of Industrial Engineering & Production Research, 21, 211-220.

[59]   Trappey, A.J.C., Charles, V., Trappey, C.V. and Wub, C.R. (2010) Genetic Algorithm Dynamic Performance Evaluation for RFID Reverse Logistic Management. Expert Systems with Applications, 37, 7329-7335.
http://dx.doi.org/10.1016/j.eswa.2010.04.026

[60]   Diabet, A., Kannan, D., Kaliyan, M. and Svetinovic, D. (2013) An Optimization Model for Product Returns Using Genetic Algorithms and Artificial Immune System. Resources, Conservation and Recycling, 74, 156-169.
http://dx.doi.org/10.1016/j.resconrec.2012.12.010

[61]   Lee, D.H. and Dong, M. (2009) Dynamic Network Design for Reverse Logistics Operations under Uncertainty. Transportation Research Part E, 45, 61-71.
http://dx.doi.org/10.1016/j.tre.2008.08.002

[62]   Pishvaee, M.S., Kianfar, K. and Karimi, B. (2010) Reverse Logistics Network Design Using Simulated Annealing. International Journal of Advanced Manufacturing Technology, 47, 269-281.
http://dx.doi.org/10.1007/s00170-009-2194-5

[63]   Subramanian, P., Ramkumar, N., Narendran, T.T. and Ganesh, K. (2013) PRISM: Priority Based Simulated Annealing for a Closed Loop Supply Chain Network Design Problem. Applied Soft Computing, 13, 1121-1135.
http://dx.doi.org/10.1016/j.asoc.2012.10.004

[64]   Hanafi, J., Kara, S. and Kaebernick, H. (2008) Reverse Logistics Strategies for End-of-Life Products. The International Journal of Logistics Management, 19, 367-388.
http://dx.doi.org/10.1108/09574090810919206

[65]   Kannan, G. (2009) Fuzzy Approach for the Selection of Third Party Reverse Logistics Provider. Asia Pacific Journal of Marketing and Logistics, 21, 397-416.
http://dx.doi.org/10.1108/13555850910973865

[66]   Tonanont, A., Yimsiri, S. and Rogers, K.J. (2009) Reverse Logistics Optimization with Data Envelopment Analysis. Proceedings of 2009 Industrial Engineering Research Conference, Miami, 30 May-3 June 2009, 1268-1273.

[67]   Suryabatmaz, A.C., Altekin, F.T. and Sahin, G. (2014) Hybrid Simulation-Analytical Modeling Approaches for the Reverse Logistics Network Design of a Third-Party Logistics Provider. Computers and Industrial Engineering, 70, 74-89.
http://dx.doi.org/10.1016/j.cie.2014.01.004

[68]   Savaskan, R.C., Bhattacharya, S. and Van Wassanhove, L.N. (2004) Closed-Loop Supply Chain Models with Product Remanufacturing. Management Science, 50, 239-252.
http://dx.doi.org/10.1287/mnsc.1030.0186

[69]   Srivastava, S.K. and Srivastava, R.K. (2006) Managing Product Returns for Reverse Logistics. International Journal of Physical Distribution & Logistics Management, 36, 524-546.
http://dx.doi.org/10.1108/09600030610684962

[70]   Roy, J., Nollet, J. and Beaulieu, M. (2006) Reverse Logistics Networks and Governance Structures. Supply Chain Forum: An International Journal, 7, 58-67.

 
 
Top