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.

facility location, recycling, reverse logistics, stochastic programming, uncertainty
dx.doi.org/10.1016/j.ejor.2001.12.001, hdl.handle.net/1765/15439
ERIM Top-Core Articles
European Journal of Operational Research
Erasmus Research Institute of Management

Listes, O.L, & Dekker, R. (2005). A stochastic approach to a case study for product recovery network design. In European Journal of Operational Research (Vol. 160, pp. 268–287). doi:10.1016/j.ejor.2001.12.001