Application of Mixed Integer Linear Programming Model in Influencing the Cost of Reverse Logistics Network of End-of-Life Vehicles

Abstract

Policy wall means restriction caused by policies and regulations where end-of-life vehicles cannot flow freely and it is an inevitable phase in the development of reverse logistics. The purpose of this paper is to find relationships between policy wall and the cost of reverse logistics operations. Reverse logistics network for end-of-life vehicles is described as a multi-stage model, which includes collection center, dismantling facility, disposal center, processing facility, secondhand market, automobile manufacturer, landfill, and recycling center. Reverse logistics network for end-of-life vehicles is designed using mixed integer linear programming model to minimize the total cost of reverse logistics network. By changing data of network topology, policy wall is simulated in reverse logistics network. The results show that there is a positive correlation between the total cost of reverse logistics for end-of-life vehicles and the number of policy walls and policy wall causes capacities of dismantling facilities wasted. Our finding may guide the policy-making for automobile remanufacture.