A novel model for a network of a closed-loop supply chain with recycling of returned perishable goods: A case study of dairy industry

Recently, following the raise in expense pressures led to lower economic growth, an increasing number of manufacturers have begun to investigate eventuality of handling returned product in a more cost-effective and proper procedure. Significance of Reverse Logistics (RL) is becoming greater due to various governmental, societal, and environmental reasons. Number of papers present in the literature on RLs is a well index of its importance. In some industries, appropriately collected returned products could be used as raw material for another product, increasing Supply Chain (SC) profits and reducing the waste. Since, perishable goods have a limited shelf -life, they can be reusable if they are collected before they reach a critical time. Accordingly, in the present study, a Mixed Integer Linear Programming (MILP) model was introduced for a network of closed-loop SC with recycling of returned perishable goods, involving suppliers, producers, retailers, together with collection and disposal centers, in a multi-product, multi-period, and multi-level basis. To do this, a case study was performed on milk and yogurt products of a company in dairy industry. The model was solved and analyzed using GAMS software. Results obtained from assessment of the model indicated that, timely collection of perishable goods and their use in production of new products reduces total costs of perishable SC network.