A hybrid Tabu Search approach for the design of a paper recycling network

This paper addresses the design of a paper recycling network including external procurement, in-house recycling of paper, technology selection and selling or disposing of co-products. In contrast to the literature, we consider a combined continuous and discrete facility location problem solved by a hybrid Tabu Search approach to enhance candidate facility locations. We provide rules of thumb regarding the length of the tabu list and suggestions regarding runtime boundaries in cases where pre-evaluations are elaborate. The results based on a real-life application case show the potential savings of in-house paper recycling compared to the solely external procurement of recovered paper.

► We present a model balancing external procurement and in-house recycling of paper.
► We link continuous to discrete location problems to enhance candidate locations.
► We provide rules of thumb for the length of the tabu list and runtime boundaries.
► The evaluation is conducted based on a real-life European paper manufacturer.
► In-house recycling is preferable to the solely procurement of recovered paper.