Abstract
The paper considers the environmental aspects, in terms of possible corporate liabilities, as well as, vehicle routing aspects of transportation, in the light of the newly minted environmental laws and economic incentives in North America, for the multi echelon network design of reverse logistics operations under deterministic assumptions. Using linear programming, the model updates one of the author´s previous formulations for corporate reverse logistics activities. While pointing out the latest challenges faced by companies with respect to forward and reverse logistics activities, the paper supports the introduction of a new concept in the area of business operations management, particularly, Supply Chain Advanced Resource Planning and Execution - SCARPE.
The key issues faced, presently, by companies when deciding whether or not, to consider and implement any product recovery initiative pertain to two main business issues. One of these major issues which is directly linked to the overall supply chain system performance and execution is the effectiveness of reverse logistics network design, in terms of location of the product recovery facilities, the points of sale and resale, the storage concepts, as well as, the employed vehicle routing strategies. The other main business issue refers to the efficiency of timely answering the increased environmental concerns, particularly in the area of industrial ecology, as it is supported by the North American governments through the latest environmental legislation.
The model presented in this paper seeks to provide support and encouragement to all companies and participants that seek to adopt reverse logistics as part of their corporate supply chain solutions.
Keywords:Supply Chain Advanced Resource Planning and Execution, reverse logistics, environment, recaptured value, vehicle routing.