Remanufacturing Network Design Modeling: A Case of Diesel Particulate Filter

In the last decade, in order to increase the customer satisfaction, companies faced with challenges like scarce resources and costs during the production process. Reverse logistic approach helps companies to cope with those difficulties by using different operations. Remanufacturing of used products enables companies to decrease production costs and also reduce raw material costs. This common problem is materialized in a famous heavy truck producer who wants to enter European market with a new product which is a diesel particulate filter. This study aims to design and develop a Reverse Logistic Network System that contains remanufacturing processes for the heavy truck manufacturer. The objective is to determine optimal geographical locations of remanufacturing centers considering economical and environmental impact as a cost function in the mathematical model based on Capacitated Facility Location Problem approach.