The Design of Reverse Logistics Network Based on Remanufacturing for a Diesel Engine Enterprise

Remanufacture is an important option for OEM to manage their end-of-life products. Efficient implementation of product remanufacture requires appropriate network structures. In this paper, we study the reverse logistics network design problem for a diesel engine enterprise. The company manufactures new diesel engines and will remanufacture returned engines in its facilities for after-sale service. We design the reverse logistics network through extending the existing service network for W company. A MILP model is developed for determining the disassembly centres´ quantity and position among the existing spare parts warehouses. So company may construct its reverse logistics network at the lowest cost. The result has been accepted by W company.