Simple Plant Location Problem with Reverse Flows

We analyze the characteristics of the logistics systems including both direct and reverse flows, their activities and structure. We address the strategic planning problem of such systems and propose a facility location model as an extension of the simple plant location problem while taking into account the specific constraints related to reverse flows of directly reusable items. For solving this model, an algorithm based on lagrangian heuristics is developed. Numerical experiments are presented and the influence of reverse flows on the number and location of facilities is discussed. Extensions to this research are also proposed.

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