Reverse Logistic Integration for Concurrent Configuration of Product and Supply Chain: Financial Feasibility Study

Recently the integration of the reverse logistic operations is considered as an urgent necessity to deal with raw material scarcity and logistic chain network disruption. Thus, the implementation of this concept in the topic of the concurrent configuration of the product and supply chain may reduce considerably the overall cost of the logistic chain. In this paper we present a new mono-objective mathematical model to handle the problem, taken into account activities related to possible partner of the supply chain partner. The model handles a set of new alternatives, and look for the optimal one that optimize the global cost considering two specific cases: situation before and after the application of the reverse logistic operations. The model, then, is validated by a case study of our choice using a mixed integer linear programming (MILP). The results illustrate the performance of the suggested approach and present a standard model to follow. The numerical resolution facilitates interpretation within a reasonable computational time.