Cost optimisation model in recycled waste reverse logistics system

摘要

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 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.