An integrated logistics operational model for green-supply chain management

Abstract

This paper presents an optimization-based model to deal with integrated logistics operational problems of green-supply chain management (G-SCM). In the proposed methodology, a linear multi-objective programming model is formulated that systematically optimizes the operations of both integrated logistics and corresponding used-product reverse logistics in a given green-supply chain. Factors such as the used-product return ratio and corresponding subsidies from governmental organizations for reverse logistics are considered in the model formulation. Results of numerical studies indicate that using the proposed model, the chain-based aggregate net profits can be improved by 21.1%, compared to the existing operational performance in the particular case studied. © 2004 Elsevier Ltd. All rights reserved.