Collection Center Location with Equity Considerations in Reverse Logistics Networks

Abstract

In this paper, we study a collection center location problem with equity considerations within reverse logistics network design. The aim of the problem is to determine the locations and the capacities of the collection centers through the planning horizon. For each time period, the decisions to be made include the location and the capacities of the collection centers, the amounts of products to send from each generation point to each collection center, and the amounts of products to send from each collection center to each firm. The problem has three objectives. The first one is to minimize total cost, the second one is to ensure equity among different firms, and the third is to provide steady flow of products to each firm along the planning horizon. The problem is modeled as a multi-objective mixed integer programming formulation. An implementation of the problem in Turkey within the context of waste electrical and electronic equipment collection is presented. Sensitivity analyses are conducted to observe the effect of changes in the problem parameters on the solutions. The analyses include changes in the fixed costs and container capacities, changes in the amount of supply and changes in the growth rate. In addition, the solution potential of the model and value of using a multi-period model as opposed to using a static one are investigated.