To develop a third-party reverse logistics network for end-of-life vehicles in Iran

Motivated by legislations such as Directive (2000/53/EC), recently, end-of-life (ELVs) problems have seriously been regarded in developing countries as well. Through enacting a law regarding ELVs problem in Iran, a government agency as a third-party sector has been established to manage and process determined number of ELVs in a cost effective way. In this paper, it is tried to define suitable assumptions given the situation of ELVs management in Iran to model the problem as a third-party reverse logistics network. The model is formulated through MILP to determine optimal locations of scrap yards over the country as well as their optimal allocations and material flows. The required data and information about ELVs are obtained from the database of online registration system and, based on their age, ELVs are categorized in three quality levels with different output material streams. Besides the current situation, two managerial scenarios are analyzed to create insights on future situations. The results show a specialization trend in allocating process, that is, most of scrap yards are opened with serving only one or two quality levels. This trend is intensified under two other scenarios' conditions.