Building a reusable reverse logistics model and its optimization considering the decision of backorder/next arrival of goods.

This paper deals with formulating a reusable reverse logistics model considering decisions on backorder/next arrival of goods. The optimization method for minimizing the transportation cost and minimizing the volume of backorder or next arrival of goods by Just In Time (JIT) delivery at the final delivery stage between the manufacturer and the processing center is proposed. The optimization algorithm proposed combines priority-based encoding/decoding and the hybrid genetic algorithm with a fuzzy logic controller, and suboptimal delivery routes are determined. Based on a case study of a distilling and sales company in Busan in Korea, solution by the new model of the reusable reverse logistics of empty bottles is performed and the effectiveness of the proposed method is verified. © 2012 Wiley Periodicals, Inc. Electron Comm Jpn, 95(5): 42-55, 2012; Published online in Wiley Online Library (). DOI 10.1002/ecj.10387 [ABSTRACT FROM AUTHOR]