A Decision Making Framework for Reverse Logistics Network Design

Abstract

The main objective of this research is to answer the following research question “How should a company design their reverse logistics network in a more efficient or responsive way?”

In this research, a conceptual framework has been developed based on several key factors for network design. Through the analysis of each key factor affecting network design decision, we have built a conceptual framework for reverse logistics network for companies to decide on whether to centralize versus decentralize their reverse logistics operations, and whether to outsource or insource some of their operations? Some existing studies are able to fit well in our proposed framework, giving us better insights to decision making in reverse logistics network design.

The proposed conceptual framework is helpful for the companies or organizations to make better decisions when designing their reverse logistics operations to achieve a lean or responsive network.