Planning the e-Scrap Reverse Production System Under Uncertainty in the State of Georgia: A Case Study

Due to legislative requirements, environmental concerns, and market image, the disposition of end-of-life e-scrap is attracting tremendous attention in many parts of the world today. Effective management of returned used product flows can have a great impact on the profitability and resulting financial viability of associated e-scrap reverse production systems. However, designing efficient e-scrap reverse production systems is complicated by the high degree of uncertainty surrounding several key factors. Very few examples of this complex design problem are documented in the academic literature. This paper contributes as analysis of a new, large-scale application that designs an infrastructure to process used televisions, monitors, and computer central processing units (CPUs) in the state of Georgia in the U.S. The case study employs a scenario-based robust optimization model for supporting strategic e-scrap reverse production infrastructure design decisions under uncertainty. A mixed integer linear programming (MILP) model is used to maximize the system net profit for specified deterministic parameter values in each scenario, and then a min-max robust optimization methodology finds a robust solution for all of the scenarios

[1]  Jens Schumacher,et al.  Logistics simulation of recycling networks , 1998 .

[2]  Simme Douwe Flapper,et al.  Product recovery in stochastic remanufacturing systems with multiple reuse options , 2001, Eur. J. Oper. Res..

[3]  L. N. Van Wassenhove,et al.  Concurrent product and closed-loop supply chain design with an application to refrigerators , 2003 .

[4]  A Gerodimos,et al.  Robust Discrete Optimization and its Applications , 1996, J. Oper. Res. Soc..

[5]  Rommert Dekker,et al.  Stochastic approaches for product recovery network design: a case study , 2001 .

[6]  Simme Douwe P. Flapper,et al.  Logistic aspects of reuse. An overview , 1996 .

[7]  Rommert Dekker,et al.  A stochastic approach to a case study for product recovery network design , 2005, Eur. J. Oper. Res..

[8]  Matthew J. Realff,et al.  Decision Models for Reverse Production System Design , 2001 .

[9]  J. C. Ammons,et al.  Modeling and Decision-making for Reverse Production System Design for Carpet Recycling , 2000 .

[10]  R. Sargent,et al.  A general algorithm for short-term scheduling of batch operations—II. Computational issues , 1993 .

[11]  David Jude Newton.  A robust approach for planning the strategic infrastructure of reverse production systems , 2000 .

[12]  T. Spengler,et al.  Environmental integrated production and recycling management , 1997 .

[13]  Robert J. Vanderbei,et al.  Robust Optimization of Large-Scale Systems , 1995, Oper. Res..

[14]  W. C. Benton,et al.  Supply-Chain Management for Recoverable Manufacturing Systems , 2000, Interfaces.

[15]  Erwin van der Laan,et al.  Quantitative models for reverse logistics: A review , 1997 .

[16]  Anna Nagurney,et al.  Reverse supply chain management and electronic waste recycling: a multitiered network equilibrium framework for e-cycling , 2005 .

[17]  S. Minner.  Strategic safety stocks in reverse logistics supply chains , 2001 .

[18]  Hai-Yong Kang,et al.  Electronic waste recycling: A review of U.S. infrastructure and technology options , 2005 .

[19]  Abbas A. Kurawarwala,et al.  A robustness approach to uncapacitated network design problems , 1996 .

[20]  Shad Dowlatshahi,et al.  Developing a Theory of Reverse Logistics , 2000, Interfaces.

[21]  Matthew J. Realff,et al.  Robust reverse production system design for carpet recycling , 2004 .

[22]  Manuel Laguna,et al.  A heuristic to minimax absolute regret for linear programs with interval objective function coefficients , 1999, Eur. J. Oper. Res..

[23]  P. C. Schuur,et al.  Business case Océ: Reverse logistic network re-design for copiers , 1999 .

[24]  Rommert Dekker,et al.  A characterisation of logistics networks for product recovery , 2000 .

[25]  I. Grossmann,et al.  A disaggregation algorithm for the optimization of stochastic planning models , 1997 .

[26]  N. S. Barnett,et al.  Private communication , 1969 .

[27]  Thomas Spengler,et al.  Integrated planning of acquisition, disassembly and bulk recycling: a case study on electronic scrap recovery , 2003, OR Spectr..

[28]  Nilay Shah,et al.  Simultaneous design, layout and scheduling of pipeless batch plants , 1996 .

[29]  C. Carter,et al.  REVERSE LOGISTICS: A REVIEW OF THE LITERATURE AND FRAMEWORK FOR FUTURE INVESTIGATION , 1998 .

[30]  Tiravat Assavapokee,et al.  Semi-Continuous Robust Approach for Strategic Infrastructure Planning of Reverse Production Systems , 2004 .

[31]  Han-Lin Li,et al.  A robust optimization model for stochastic logistic problems , 2000 .

[32]  V D R Guide,et al.  Proactive expediting policies for recoverable manufacturing , 1998, J. Oper. Res. Soc..

[33]  Rommert Dekker,et al.  A two-level network for recycling sand: A case study , 1998, Eur. J. Oper. Res..

[34]  Manbir S. Sodhi,et al.  Models for recycling electronics end-of-life products , 2001, OR Spectr..

[35]  Askiner Gungor,et al.  Issues in environmentally conscious manufacturing and product recovery: a survey , 1999 .

[36]  de Aj Ad Ron,et al.  Reuse : first international working seminar, Eindhoven, November 11-13, 1996 : proceedings , 1996 .