Supply chain design and planning for the carpet industry considering recycling processes

Abstract

This paper introduces a mixed-integer linear programming model to tackle the design and planning problem of Closed Loop Supply Chains in the carpet industry. A distinctive feature of the approach is handling different recovery processes involving dissimilar activities and flows of recovered materials. Moreover, the reverse network facilities and logistics are completely integrated with the forward network structure, in order to obtain a high level of customer supply while considering economic goals. In addition, the economies of scale for the recycling facilities are also explicitly handled. The model allows to determine the products and quantities to be manufactured, transported, stored, and recycled to cover the demand of a set of customers. The objective function is to maximize the profit of the whole life-cycle of products. An example based on an industrial case that involves the recovery of raw materials is presented to show the relevance of the method.