Reverse Logistics Network Construction Of End-of-life Automobile

ABSTRACT:With the development of our national economy, enterprises begin to pay more attention to the "third profit source"-logistics. Automobile industry, which has become the backbone of national industry, also begins to pay attention to positive logis-tics creating profits. However, reverse logistics that can produce huge economic effi-ciency is ignored, especially the recycling of discarded automobiles. On the one hand, with the improvement of living standards, the purchasing power also increases gradually. In recent years, the demand of auto as well as the ownership increased continuously and the updating of automobiles product became faster. So the amount of abandoned auto-mobiles is keeping rising, producing numerous wastes and causing environmental pol-lution problems. On the other hand, the competition among auto enterprise is becoming increasingly fierce, so enterprises have to take effective measures on cost control, prod-uct quality and service level to capture competition advantage. Through the implement of end-of-life auto reverse logistics management, both environment protection and cost control can get improved, leading Chinese automobile industry to a healthy, stable and efficient, scientific development road.Based on the background above, we will discuss the reverse logistics network con-struction of end-of-life auto remanufacturing for providing certain decision-making ba-sis to effective implementation of reverse logistics. The theoretical foundation of re-verse logistics networks is expounded first, and then put forward the decision-making frame of network construction, pointing out that determining the reverse logistics opera-tion mode is the first job. Then three operation modes including manufacture-operated mode, joint-operated mode and third party logistics supplier-operated mode are ana-lyzed and making operation decision by using the analytic hierarchy process based on balanced score card. At last, reverse logistics networks of end-of-life auto remanufacturing under the mode of manufacture-operated and joint-operated are constructed by using mixed integer programming model. Ascertain the type location quantity and operate-ability of the reverse logistics facilities and transport plan between reverse logistics facilities to make fixed investment and the cost of operation and trans-port minimized in the two models, then give the examples of them.