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Discrete Dynamics in Nature and Society
Volume 2016 (2016), Article ID 3475369, 18 pages
http://dx.doi.org/10.1155/2016/3475369
Research Article

A Location-Inventory-Routing Problem in Forward and Reverse Logistics Network Design

1School of Management, Xi’an Jiaotong University, No. 28 Xianning Road, Xi’an, Shaanxi 710049, China
2The Key Lab of the Ministry of Education for Process Control & Efficiency Engineering, No. 28 Xianning Road, Xi’an, Shaanxi 710049, China

Received 1 February 2016; Revised 25 May 2016; Accepted 6 June 2016

Academic Editor: Gabriella Bretti

Copyright © 2016 Qunli Yuchi et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We study a new problem of location-inventory-routing in forward and reverse logistic (LIRP-FRL) network design, which simultaneously integrates the location decisions of distribution centers (DCs), the inventory policies of opened DCs, and the vehicle routing decision in serving customers, in which new goods are produced and damaged goods are repaired by a manufacturer and then returned to the market to satisfy customers’ demands as new ones. Our objective is to minimize the total costs of manufacturing and remanufacturing goods, building DCs, shipping goods (new or recovered) between the manufacturer and opened DCs, and distributing new or recovered goods to customers and ordering and storage costs of goods. A nonlinear integer programming model is proposed to formulate the LIRP-FRL. A new tabu search (NTS) algorithm is developed to achieve near optimal solution of the problem. Numerical experiments on the benchmark instances of a simplified version of the LIRP-FRL, the capacitated location routing problem, and the randomly generated LIRP-FRL instances demonstrate the effectiveness and efficiency of the proposed NTS algorithm in problem resolution.