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A stochastic approach to a case study for product recovery network design
Affiliation:1. School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran;2. School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran;1. Department of Industrial Engineering, K.N. Toosi University of Technology, Tehran, Iran;2. Young Researchers and Elite Club, Arak Branch, Islamic Azad University, Arak, Iran;1. Department of Mechanical and Industrial Engineering, Concordia University, 1515 St. Catherine Street W., Montreal, QC, Canada H3G 1M8;2. Département de mathématiques et génie industriel, Polytechnique de Montréal, C.P. 6079, succursale Centre-ville, Montréal, QC, Canada H3C 3A7;3. Interuniversity Research Centre on Enterprise Networks, Logistics, and Transportation (CIRRELT), Montreal, QC, Canada H3T 1J4
Abstract:Uncertainty is one of the characteristics of product recovery networks. In particular the strategic design of their logistic infrastructure has to take uncertain information into account. In this paper we present a stochastic programming based approach by which a deterministic location model for product recovery network design may be extended to explicitly account for the uncertainties. Such a stochastic model seeks a solution which is appropriately balanced between some alternative scenarios identified by field experts. We apply the stochastic models to a representative real case study on recycling sand from demolition waste in The Netherlands. The interpretation of the results is meant to give more insight into decision-making under uncertainty for reverse logistics.
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