A Facility Location Model for Recovery Network Design

Abstract

This chapter is concerned with quantitative decision models for an efficient design of logistics networks in a product recovery context. We start by reviewing literature in Section 5.1. Based on the characteristics identified in the previous chapter we then present a generic recovery network model in Section 5.2 and discuss its generality and limitations. Section 5.3 illustrates the model by means of two numerical examples. In particular, the impact of product return flows on the network design is highlighted. Section 5.4 presents a more systematic sensitivity analysis and investigates factors that determine network robustness. Finally, a number of model extensions is discussed in Section 5.5.