Analysis of Quantity Uncertainty of Returns on Remufacturing Logistic Network Using a Stochastic Programming Model

A key aspect to recognize reverse flows is that the collection of used goods from the marketplace is a supply-driven flow. This supply-driven flow creates a great deal of uncertainty with respect to the quantity, timing and condition of items. Due to the uncertainty, a stochastic programming model for the logistic network that incorporates the remanufacturing into the manufacturing system is put forward, in which quantities of recycled products are considered as random parameters. The corresponding crisp equivalences of chance constraints are obtained. The impact of variance of returns and flexibility requirements of disassembly centers are studied based on numerical examples.