Production routing problems with reverse logistics and remanufacturing

This paper introduces a mixed integer programming model for production routing problems with reverse logistics and remanufacturing, which are closed-loop production routing problems addressed for the first time. A solution method of branch-and-cut guided search algorithm is developed. Computational results from instances adapted from benchmarks of production routing problems show that, the algorithm is more effective when pickup requests are relative high. The problem is also easier to solve when production or transportation costs are lower. The optimal decisions are insensitive to the location of remanufacturing depot whether it is geographically centered or centered with gravity.