A Closed-Loop Reverse Logistics Bi-level Programming Model and Algorithm

Limited resources have made the cost of the factories higher and higher than before.In order to reduce the cost,some factories plan to reuse the old goods to produce.In fact,remanufacturing not only can reduce the cost of factories,but also can protect our environment and save our resources.Hence,some governments in the world have constituted some laws and regulations to encourage or force the companies to remanufacture.But reclaiming the old goods also need cost.In fact,the cost of producing some kinds of products with old goods may be higher than that of producing them with raw materials.Hence,not all factories would like to remanufacture.In this paper,we will study how the government lays down the hortative regulations for the factories to make them willing to remanufacture by establishing a bi-level model.And we will give some advice to both the government and the factories by analyzing the solutions to the model.