Integrating forward and reverse logistics network for commercial goods management. An integer linear programming model proposal

Eva Ponce-Cueto, Melisa Molenat Muelas


In this study, an optimization model is formulated for designing an integrated forward and reverse logistics network in the consumer goods industry. The resultant model is a mixed-integer linear programming model (MILP). Its purpose is to minimize the total costs of the closed-loop supply chain network. It is important to note that the design of the logistics network may involve a trade-off between the total costs and the optimality in commercial goods management. The model comprises a discrete set as potential locations of unlimited capacity warehouses and fixed locations of customers’ zones. It provides decisions related to the facility location and customers’ requirements satisfaction, all of this related with the inventory and shipment decisions of the supply chain. Finally, an application of this model is illustrated by a real-life case in the food and drinks industry. We can conclude that this model can significantly help companies to make decisions about problems associated with logistics network design.


forward/reverse logistics network; network design; mixed-integer linear programming; facility location; commercial goods

Full Text:



ACOTRAM. (2014). Asistente para el Cálculo de Costes del Transporte de Mercancías por Carretera. Published by the Infrastructure Ministry of Spain.

Cardoso, S.R., Barbosa-Povoa, A.P., Relvas, S. (2013). Design and planning of supply chains with integration of reverse logistics activities under demand uncertainty. European Journal of Operational Research, 226(3): 436-451. doi:10.1016/j.ejor.2012.11.035

Jayaraman, V. (1998). Transportation, facility location and inventory issues in distribution network design: An investigation. International Journal of Operations & Production Management, 18(5): 471-494. doi:10.1108/01443579810206299

Jayaraman, V., Patterson, R.A., Rolland, E. (2003). The design of reverse distribution networks: Models and solution procedures. European Journal of Operational Research, 150(1): 128-149. doi:10.1016/S0377-2217(02)00497-6

Lu, Z., Bostel, N. (2007). A facility location model for logistics systems including reverse flows: The case of remanufacturing activities. Computers & Operations Research, 34(2): 299-323. doi:10.1016/j.cor.2005.03.002

Srivastava, S.K. (2008). Network design for reverse logistics. Omega, 36(4): 535-548. doi:10.1016/

Yongsheng, Z., Shouyang, W. (2008). Generic Model of Reverse Logistics Network Design. Journal of transportation systems engineering and information technology, 8(3): 71-78. doi:10.1016/S1570-6672(08)60025-2

Teo, C.P., Shu, J. (2004). Warehouse-Retailer Network Design Problem, Operations Research, 52(3): 396-408. doi:10.1287/opre.1030.0096

Abstract Views

Metrics Loading ...

Metrics powered by PLOS ALM


Cited-By (articles included in Crossref)

This journal is a Crossref Cited-by Linking member. This list shows the references that citing the article automatically, if there are. For more information about the system please visit Crossref site

1. A process model of a logistics system as a basis for optimisation programme implementation
Dmitriy S. Rybakov
International Journal of Logistics Research and Applications  vol: 21  issue: 1  first page: 72  year: 2018  
doi: 10.1080/13675567.2017.1361910

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives- 4.0 International License 

Universitat Politècnica de València

e-ISSN: 2340-4876     ISSN: 2340-5317