A two-stage stochastic and robust programming approach to strategic planning of a reverse supply network: The case of paper recycling


Kara S. , ÖNÜT S.

EXPERT SYSTEMS WITH APPLICATIONS, vol.37, no.9, pp.6129-6137, 2010 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 37 Issue: 9
  • Publication Date: 2010
  • Doi Number: 10.1016/j.eswa.2010.02.116
  • Title of Journal : EXPERT SYSTEMS WITH APPLICATIONS
  • Page Numbers: pp.6129-6137
  • Keywords: Reverse supply network design, Stochastic programming, Robust programming, Paper recycling, Uncertainty, OPTIMIZATION MODEL, LOGISTICS, DESIGN, UNCERTAINTY, PRODUCT, SYSTEM

Abstract

Paper is an example of a valuable material that can be recycled and recovered. In this study, a two-stage stochastic revenue-maximization model is presented to determine a long-term strategy under uncertainty for a large-scale real-world paper recycling company. This network-design problem includes optimal recycling center locations and optimal flow amounts between the nodes in the multi-facility environment. The proposed model is formulated with two-stage stochastic mixed-integer and robust programming approaches. The models are solved by commercial software GAMS 21.6/CPLEX 9.0 and the results are compared. The study is followed by the analyses of the results. (C) 2010 Elsevier Ltd. All rights reserved.