Reverse logistics system planning for recycling electrical appliances and computers in Taiwan

Since the disposition of end-of-life home appliances has caused tremendous attention, Taiwan recently promulgated a Scrap Home Appliances and Computers Recycling Regulation that mandates manufacturers and importers to take back their products. Reverse logistics system planning shall become vital as the take-back rate increases and the service area expands in the future. This study utilizes a mixed integer programming model to optimize the infrastructure design and the reverse network flow. The proposed model attempts to minimize the total cost, which consists of transportation cost, operating cost, fixed cost for new facilities, final disposal cost and landfill cost, as well as the sale revenue of reclaimed materials. Results for various scenarios that consider various take-back rates and operating conditions are presented.

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