Title: Cost optimisation model in recycled waste reverse logistics system
Authors: Rupesh Kumar Pati, Prem Vrat, Pradeep Kumar
Addresses: Mechanical and Industrial Engineering Department, Indian Institute of Technology, Roorkee 247 667, India. ' Indian Institute of Technology Roorkee, Roorkee 247 667, India. ' Mechanical and Industrial Engineering Department, Indian Institute of Technology, Roorkee 247 667, India
Abstract: This study presents a cost optimisation model for multi-variety (or multi-type) Recycled Waste Reverse Logistics System (RWRLS). A linear analytical model is formulated which minimises the total reverse logistics costs for multi-variety Recycled Waste Reverse Logistics System (RWRLS) subjected to constraints that take into account various internal and external factors affecting the RWRLS. Internal factors include unit inventory carrying costs, initial inventories, inventory capacities, unit manufacturing costs etc., whereas external factors include demand, distance, unit travelling costs, etc. between the stages for different varieties of recyclable waste. The model helps the organisation in developing an appropriate manufacturing strategy, e.g. units of various varieties of paper produced, by comparing the costs in different scenarios of demand. The described model may help in deciding about the transaction of goods/material/varieties taking place in the long term. The model may be helpful in making strategic inventory management decisions.
Keywords: supply chain; paper industry; reverse logistics; environmental issues; cost optimisation; manufacturing strategy; inventory management; recycling; waste management.
International Journal of Business Performance Management, 2004 Vol.6 No.3/4, pp.245 - 261
Published online: 08 Nov 2004 *Full-text access for editors Access for subscribers Purchase this article Comment on this article