The Design of Reverse Logistics Network Based on Remanufacturing for a Diesel Engine Enterprise

Remanufacture is an important option for OEM to manage their end-of-life products. Efficient implementation of product remanufacture requires appropriate network structures. In this paper, we study the reverse logistics network design problem for a diesel engine enterprise. The company manufactures new diesel engines and will remanufacture returned engines in its facilities for after-sale service. We design the reverse logistics network through extending the existing service network for W company. A MILP model is developed for determining the disassembly centres’ quantity and position among the existing spare parts warehouses. So company may construct its reverse logistics network at the lowest cost. The result has been accepted by W company. Keywordsreverse logistics; remanufacture; optimizationl

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