Optimal design of integrated logistics networks for hybrid manufacturing/remanufacturing systems based on two-stage stochastic programming

An optimization model for designing integrated logistics networks in hybrid manufacturing/remanufacturing systems (HMRS) was proposed based on two-stage stochastic programming approach. According to the model, the number of various facilities, their locations and the allocation of the corresponding goods flows within the network can be decided upon. The objective is to maximize the net revenue over the operational period. The characteristics of the model are as follows: taking into account the uncertainty of the demanded quantities of products and the returnable quantities of used products in HMRS; considering the integration of facilities and combined transportation of forward logistics and reverse logistics as well as the equipment problem of processing technologies for return centers. Finally, an example was presented to demonstrate the validity of the model.