Designing reverse logistics network for End-of-Life Vehicles under capacity constraints

Due to the environmental protection and the remaining economical value in End-of-Life Vehicles, this paper presents a capacitated facility location reverse logistics network problem and formulates a mixed-integer nonlinear facility location model to determine the optimal number and locations for collecting centers so as to minimize the total cost. Since this problem is NP-hard, we propose a Lagrangean Relaxation and Tabu Search hybrid algorithm. The performance of the proposed solution method has been demonstrated with computational experimentation.