A bicriterion reverse distribution model for production recall

In the aftermath of the Consumer Product Safety Act of 1972 coupled with ever-increasing consumerism, product recall has become a common problem confronting many manufacturing organizations. Reverse distribution activities involving the removal of defective and/or hazardous products from the hands of customers are more crucial to the survival of some companies than are forward distribution activities because the companies’ permanent goodwill is at stake. Nevertheless, not much attention has been given to the design of effective reverse distribution systems. This paper attempts to develop effective product recall strategies which not only minimize distribution costs of recall, but also maintain companies’ goodwill. Generally, better customer service, prerequisite to companies’ goodwill, can be maintained by a swift recall process that results in higher distribution expenses. In an effort to consider tradeoff between reverse distribution costs and customer service, we propose a weighted goal programming model.