Multi-Stage optimization under uncertainty in reverse logistics operations: An industrial scenario

Abstract

The major concern of reverse logistics operations involves reducing logistics costs, improving after sales service, waste disposal and providing good  quality service in today's green environment. Process optimization involving uncertainty under reverse logistics set-up is a major challenge. There is a  need to consider the dynamics of the real situation because of the variation of product/process characteristics to make the system more robust. A  comparative analysis and the need for multi-stage optimization are illustrated here based on a single stage optimization model after performing its  sensitivity analysis. Accordingly, a multi-stage optimization problem is formulated here to solve the cost optimization problem of charge mix under a  reverse logistics set-up of a foundry business and to deal with the uncertainties involved in a practical business scenario. The proposed framework can be  effectively implemented in a similar reverse logistics environment considering uncertainties of the process parameters/product characteristics.