Improved Particle Swarm Optimization Algorithm For Reverse Logistics Network Design

With the rapid development of Internet and communication, more and more e-commerce has been widely used. In response to the financial crisis, the government has been actively pulled the national consumption and published a number of policies to promote the development of electronic commerce. E-commerce is a virtual commerce transaction. Customers can not touch the real product, when the actual quality of the product is lower than their expectation, they would choose to return the product. Thus, the return product would be increase by the E-commerce's development. Moreover an enterprise can save a great number of transportation, inventory and warehousing costs associated with product return by optimal handing the product returns.This paper proposes a nonlinear mixed-integer reverse logistics model which focus on the problem of determining the number and location of centralized return centers and where returned products from retailers or end-customers were collected, sorted, and consolidated into a large shipment destined for manufactures'or distributors'repair facilities. To solve the model an improved particle swarm optimization be introduced. The result indicates that the improvement PSO algorithm is an effective method of solving the problem.