Journal of Cleaner Production 244 (2020) 118717

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Logistics network design to reuse second-hand household appliances

for charities
Abdolhossein Sadrnia a, *, Najme Roghani Langarudi b, Amirreza payandeh Sani a
a
Department of Industrial Engineering, Quchan University of Technology, P.O. Box, 94771-67335, Quchan, Iran
b
Department of Industrial Engineering, Amirkabir University of Technology-Tehran Polytechnic, Iran

a r t i c l e i n f o a b s t r a c t

Article history: The increased urban population, lifestyle change, diet change, as well as increased welfare level and life
Received 13 September 2018 standards in urban societies have caused huge amount of solid waste in metropolitan cities. Solid waste
Received in revised form process management in metropolitan cities is currently one of the significant problems in developing
3 October 2019
countries. Most of the studies in the literature are concentrated on reverse logistics for one type of
Accepted 3 October 2019
Available online 7 October 2019
product for recovery or remanufacturing process, and far too little attention has been paid to a reuse
distribution network through charities. In this study, a framework is suggested to reuse the variety of
Handling editor: Prof. Jiri Jaromir Kleme
s household appliances to reduce municipal solid waste and help the low-income families. A single-
objective mixed integer linear programming (MILP) model with uncertainty in the number of the
Keywords: products used by consumers is presented to optimize the reverse logistics network. The designed logistic
Reverse logistic network considered different recycling options such as recycling and repair and the centers called
Charity charity. In order to show the functionality of the presented model, a numerical example is solved by
Reuse GAMS software to obtain the network structure with the optimum cost. The results confirm the appli-
Household appliance recycling
cability of the model by offering a great number of used products that can be transported and reused by
affordable cost.
© 2019 Elsevier Ltd. All rights reserved.

1. Introduction (Pandey et al., 2018). Circular economy that is a part of sustainable

Waste, as the side-product of human activities, was defined in
the environment program of the United Nations as follows: “The
objects which are not required or used any longer by their owners
requiring the process or disposal”. The inappropriate treatment and
inefficient management of municipal waste cause’s environmental
pollution, transfer of disease, high consumption of energy pro-
duction per capita, global warming, and more importantly the lack
of environmental sustainability (return cycle of materials to na-
ture). Municipal solid wastes are a direct and inevitable result of
urbanization and development and have risen as a real environ-
mental threat (Singh, 2019). Moreover, rapid urbanization, boom-
ing economy, and industrialization have considerably exceeded the
production of waste during the past decades (Song et al., 2015).
Managing the growing volumes of household waste in developing
countries of Asia is become a struggling challenge in recent years
* Corresponding author.
E-mail addresses: a.sadrnia@qiet.ac.ir (A. Sadrnia), najmeroghani@yahoo.com
(N.R. Langarudi).
development inspires waste reduction (Moktadir et al., 2018b).
Meanwhile, sustainable supply chain management (SSCM) imple-
mentation can help to ensure long-term environmental, social and
economic benefits (Moktadir et al., 2018a). It is indispensable to
design and develop networks and programming systems for mu-
nicipalities and sustainable waste organizations under the
impression (Harris-Lovett et al., 2019).
There are different definitions for “reuse” and other related
concepts in the literature as categorized by (Lu et al., 2018) that we
refer to the definition of the European Commission in 2010; reusing
means any operation that is used by good or its components
reaching to the end of their use such as continuing the use of the
goods returned to the collection, distribution, and recycling center
as well as reusing this good after the restoration. Reusing is
preferred to recycling since waste recycling sometimes requires
energy or raw materials. Thus, the reuse has the potential to in-
crease the local employment, save resources and energy, and offer
economic and social benefits (Messmann et al., 2019). An example
of this concept is related to repairing and reusing home appliances
to reuse them by poor people through charity centers or dealing in

https://doi.org/10.1016/j.jclepro.2019.118717
0959-6526/© 2019 Elsevier Ltd. All rights reserved.
2 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717
other countries. Some products and goods such as durable goods
can be used more than once to the same mode or application.
Moreover, the collected goods can be reused after some partial
repairs in second-hand markets, flea markets, charities, or other
countries.
The aforementioned facts was a motivation for us to concen-
trates on a logistic network of collecting and repairing the used
goods. The main contributions of this study are designing and
developing the mathematical optimization model of a reverse lo-
gistic network for reusing a variety of second-hand appliances in
small sizes (electronic devices and small tables), medium (oven,
table, and chair), and bulky goods (furniture and big refrigerator).
Indeed, some charities were located to donate these used appli-
ances to low-income families. Since the unknown variables repre-
sents the integer quantities and decisions a mixed integer linear
programming (MILP) mathematical model is presented to mini-
mize the total cost of the logistic network. In order to reflect the real
life aspect of the problem, the uncertain amount of second-hand
home appliances is considered and applied in a stochastic pro-
gramming formulation.
Regarding the literature this problem has not been studied
before. In addition to propounding a municipal household appli-
ances reuse network, the following questions are discussed
through this study; How much used-appliances must be trans-
formed between consumer, collection, and charity nodes? What is
the optimal location for establishing the collection and charity
centers? How much the optimal solution is sensitive to some
parameter changes?
The general structure of this paper is as follows. Section 2 rep-
resents the previous related investigations and extracts the signif-
icant facts and gaps of studies. Section 3 presents the statement of
problem and Section 4 deals with the mathematical modeling of
the proposed logistics network. Section 5 provides the numerical
example and computational results of GAMS software output as
well as the sensitivity analysis for some parameters. Finally, the
conclusion is presented in section 6.
2. Related literature
When one discards or declares the will to discard a product, it
turns into waste by passing the waste threshold (Messmann et al.,
2019). According to the Waste Framework Directive (European
Parliament, 2008), waste prevention confirmed to be the priority
of waste management, hence recycling and reuse should be
preferred to energy recovery from waste. Moreover, in contrast to
the traditional economy, the concept of the circular economy pro-
vides a development framework that promotes economic growth
by optimized consumption of the natural resources (Sakai et al.,
2017). Under the concepts of the circular economy, waste preven-
tion through “Reduce, Reuse, Recycle, and Recover” (3rs and 4rs)
rules have attracted the researchers’ concern in recent years
(Krumay and Brandtweiner, 2016; Liu et al., 2017). Reuse could be
considered as an extension of a lifetime, and this study concen-
trates on it as the second priority among the waste management
options.
Reuse and the related concepts have various definitions in the
literature (Lu et al., 2018). Generally, the relevant concepts can be
categorized into groups of reuse, remanufacturing, recovery, and
recycling and the detailed definitions are provided by (European
Parliament, 2008). In this study “preparing for reuse” is also
considered under the terminology of reuse and generally reuse
refers to any operation including checking and cleaning by which
products that have become waste are provided to be sold or
donated to another consumer. However, the public sector is
considered to be an important driver of waste prevention because
of its legislative abilities and its considerable market power (Hutner
et al., 2017), charitable institutions conduct the major part of pro-
cessing municipally collected waste for the preparation for reuse
(Schomerus et al., 2014). Curran and Williams studied launching
the appliance recycling centers and establishing charities, local
private companies, and public centers in England. They considered
there are different current ways for reusing durable goods: private
or public companies as well as charity centers. They mentioned the
growth rate of bulky appliance waste in the UK was estimated 59%,
which collection centers can collect about 51% furniture and 36%
electronic devices. Ramsuch et al. proposed a method for esti-
mating all reasonable products in municipal solid waste of Austria.
Pacelli, Ostuzzi, & Levi developed a method to be followed by
products designers and companies since early product develop-
ment phase. Kim et al. (2019) found a solution for rural electrifi-
cation in areas with full of renewable resource by reuse of discarded
materials with a frugal innovation in a renewable energy systems.
Mokhtari (2018a,b) proposes inventory problems for determining
order quantity for recoverable and reusable items. Based on the
results, about 16% of the whole waste in Austria can be reused. The
reuse studies mostly investigates wastewater reuse (Vera-Puerto
et al., 2019), electrical equipment (Pini et al., 2019), and industrial
products such as oil filters and batteries (Canals Casals et al., 2019)
and rarely focused on home appliances. To the best of our knowl-
edge this is the first study concentrates on all types of household
equipment for a reuse infrastructure.
On the other hand, the reverse logistic (RL) was highly consid-
ered in recent years due to it is a main infrastructure for collecting
and recovering used goods from consumer, so that RL was became a
key element in the sustainable development. The definition of
“reverse logistic” varies from time to time by many authors ac-
cording to their comprehension. The reverse logistics is an
emerging business practice that follows the objectives of sustain-
able production and consumption and also refers to the effective
process of planning, implementation, and control of new materials
flow, semi-built inventory, finalized goods, and their information in
terms of cost, from the consumption point to the recovery points to
recreate the value (Lu and Bostel, 2007; Mahadevan, 2019). Due to
the uncertainty of quality and quantity of returned goods, the RL
system has more complexities (Ayvaz et al., 2015) and its imple-
mentation is more time-consuming than forward logistics. Table 1
categorizes the related literature of RL based on the waste man-
agement options and shows that logistics studies rarely focused on
direct reuse network.
The reverse logistics investigations mostly focuses on recycling,
recovering, remanufacturing, and repairing while far too little
attention has been paid to a reuse distribution network through
charities. Banguera et al. (2018) develops a MILP model for capac-
itated facility location, by the objective of minimizing the cost of
fines while meeting the recycling targets. Li and Xianliang (2015)
investigates a reverse logistics model with both environmental
and cost objectives for mobile phones network facility and
arrangement location problem. In another study Xu et al. (2019)
employ a reverse logistics network (RLN)-based multi-period
model for construction demolition waste recycling and disposal.
Moreover in the recovering field, Qiang and Zhou (2016)
established a robust mixed integer linear programming model for
waste electrical and electronic equipment reverse logistics network
by considering the uncertainty factor. Another recovering based
study is conducted by (Kuşakcı et al., 2019) that focuses on end-of-
life vehicles reverse network in Turkey. They developed a fuzzy
mixed integer location-allocation model with the uncertainty of
the supplies. As a remanufacturing study, Zhang and Ma (2017)
focuses on a multi-objective model under fuzzy environment in
lighting diode lights industry for establishing an optimal network
 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717 3

Table 1
Reverse logistics studies based on waste management options and product types.

Article Waste management options Product Problem Objective

Li and Xianliang (2015) Recycle Mobile phones Facility location Min Cost and Min Environmental impacts
€
Ene and Oztürk (2015) Recovery Vehicles Facility location Max Profit and Min Pollution
Govindan et al. (2016) Recycle Medical syringe Network Min Cost and Min Environmental impacts
Li et al. (2016) Repair Electronics Facility Location Min Cost and Min Tardiness
Qiang and Zhou (2016) Recovery electronic equipment Network Min Risk
Zhang and Ma (2017) Recycle-Remanufacture LED Products Network Min cost and Max recycling
Pal (2017) Reuse Cloth Network reverse logistics design
Banguera et al. (2018) Recycle Tiers Facility Location Max Benefit
Paydar and Olfati (2018) Remanufacture polyethylene terephthalate bottles Network Min Cost
Liao (2018) repair, remanufacturing, recycling, reuse bulk waste Network Max Profit
Xu et al. (2019) Recycle Construction and demolition waste Network Min Cost
Zarbakhshnia et al. (2019) Recycle-Remanufacture Home appliance industry Network Min Cost and Min CO2 emissions
Kuşakcı et al. (2019) Recovery, Recycling end-of-life vehicles Location-allocation Min Cost

flow and re-manufacturing sites. Li et al. (2016) proposed a bi-
objective MILP mathematical model for the multi-period design
problem of electronics manufacturing’s repair service. They used
epsilon constraint method for small size problems and NSGAII al-
gorithm for large size cases. In addition, Paydar and Olfati (2018)
considered the process of collecting and remanufacturing poly-
ethylene terephthalate bottles as a MILP model for a reverse lo-
gistics network. They also employed meta-heuristic algorithms to
solve the large scale samples. Furthermore, in a pharmaceutical
industry study Narayana et al. (2019) developed a system dynamic
and reverse logistics model for sustainability. Moreover, based on
an extensive review of strategic issues in solid waste management
(Ghiani et al., 2014), uncertainty is an important aspect in tactical
decisions which is still scarce. For further investigations the inter-
ested readers can refer to (Dias et al., 2019; Prajapati et al., 2019).
3. Statement of problem
The studies on waste conducted by the Department of Envi-
ronment indicated that the daily waste production per capita for
each person is 700 gr that is twice the global standard and 70% of
the produced waste can be recovered. Then, necessity of estab-
lishing an infrastructure to recover (recycle or reuse) used goods in
Iran is clear. In this study, a reverse logistic network including the
consumers, local collection centers, regional collection, disposal,
recycling, repair, and charity centers for a variety of second-hand
appliances was designed in uncertainty conditions (Fig. 1). Prod-
uct flows among different facilities are decision variables.
In the designed network, the second-hand appliances by con-
sumers or the collecting service belong of municipality are trans-
ferred to the local collection centers and they are all transferred to
the main collection centers. At this center, the products are divided
into four main groups including the needs to be repaired, recyclable
products, and sent products to charities (to be reused), and waste
products (disposal) that should be go to landfill or disposal center.
The products in the regional collection center should be sent to the
repair shop if they need to be repaired after sorting. The number of
repair shops and their types are different such as the electronic
device repair shop and wooden product repair shop. The products
are sent to charity centers after being repaired. A group of products
with good quality and suitable to be reuse are directly donated to
the charities. The products which can be recycled are transferred to
recycling centers while the products which cannot be recycled,
repaired, or donated to charities are transferred to the disposal
centers. All products are divided into three groups in terms of size
including small products such as electric devices and small tables in
1/8 cubic meters, medium products such as oven, table, and chair in
1 cubic meter, and large products such as furniture and big refrig-
erator in about two cubic meters. Table 2 shows the product
classification.

Disposal center

Local Regional Recycling

Consumer collection collection center
center center

Charities Repair centers

Fig. 1. Reverse logistic network for second-hand appliances.

4 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717

Table 2
Product classification.

Type Product type Feature Example

A Small products Dimensions in 1/8 cubic meters. Electric devices and small tables.
B Medium products Dimensions in 1 cubic meter. Oven, table, and chair.
C Large products Dimensions in about 2 cubic meters. Furniture and big refrigerator.

One of the assumptions of problem is that two vehicles with X X X

different capacities are used for different size of product trans- Min Z ¼ Fm Ym þ Fh Yh þ TRKg l T  disg l  X TK gl
portation. In this study, two types of vehicle are considered, among m h K;g;l;T
which we can refer to higher capacity. The travel of vehicles begins X
þ TRKlm T  disg l  X TK l mþ
when their load is all delivered.
K;l;m;T
P  
4. Mathematical modeling Ci þ TRKm i T  dism i X TK mi
K;m;i;T
X  
In this section, a mixed integer linear programming is developed
þ Cre þ TRKm r T  dism r X TK m rþ
for the reverse logistic network configuration. Thus, the sets, pa- K;m;r;re;T
rameters, decision variables, and binary variables are defined as   (1)
P
follows: Crw þ TRKm r T  dism r X TK m r
K;m;r;rw;T
P
4.1. Sets þ TRKm h T  dism h  X TK mh
K;m;h;T
In this section, sets are defined as mentioned in Table 3. P  
þ Cd þ TRKm d T  dism d X TK md
K;m;d;T
4.2. Parameters P
þ TRKr h T  disr h  X TK rh
K;r;h;T
Defined parameters for this model are listed in Table 4.
Parts 1 and 2 of Eq. (1) are related to the fixed costs of center
4.3. Decision variables establishment. Nest part of Eq. (1) indicates the transportation
costs from consumer center to local collection centers and forth
In this section, decision variables are defined for this mathe- part of Eq. (1) represents the transportation costs from local
matical model. These variables represent the optimal amount of collection centers to regional collection centers. Parts 5, 6, and 7 of
products (appliances) that are transported between different fa- Eq. (1) demonstrate the transportation costs and the costs of each
cilities and also the optimal number of needed vehicles which are recycling, electronic devices, repair, wooden product repair, and
operational. All decision variable are mentioned in Table 5. furniture repair centers. Part 8 of Eq. (1) shows the transportation
costs from regional collection centers to charities. Ninth part of Eq.
4.4. Binary variables (1) raises the transportation costs and the cost of each product
disposal unit and the last part of Eq. (1) focuses on the trans-
The binary variables of the model are defined as tabulated in portation costs of each repaired product unit from the repair center
Table 6. These variables are related to the location of regional to charities.
collection centers and charities.

4.5. Objective function

4.6. Constraint
In this model, the objective of network cost minimization in-
The model Constraints are as follows:
cludes the fixed costs of center establishment, transportation costs,
and operational costs include: the costs of product recycling, X X
electric device repair, wooden appliance repair and product X Tk g l ¼ X Tk l m ¼ cT; K; l (2)
g m
disposal.
X
~ ¼
X Tk g l ¼ P cK (3)
K
Table 3
T;g;l
Definitions of the model sets.

Symbol Definition X X
a X Tk l m  X Tk m i cT; K; m (4)
G ¼ f1; 2; …; gg Consumer center set
l i
L ¼ f1; 2; …; lg Local collection center set
M ¼ f1; 2; …; mg Regional collection center set
D ¼ f1; 2; …; dg Disposal center set
X X
I ¼ f1; 2; …; ig Recycling center set
b X Tk l m  X Tk m r cT; K; m (5)
l r
RE ¼ f1; 2; …; reg Electric device repair shop set
RW ¼ f1; 2; ; …; rwg Wooden appliance repair shop set
H ¼ f1; 2; …; hg charities set X X
K ¼ fA; B; Cg Types of products set
m X Tk l m  X Tk m h cT; K; m (6)
T ¼ fT1 ; T2 g Vehicles set l h
U Possible scenarios set s cU ε
 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717 5

Table 4
Definitions of the model parameters.

Symbol Definition

Pk s Number of products used by consumers under scenario s.

Fm The fixed cost of establishing regional collection centers (USD)
Fh The fixed cost of establishing charity centers (USD)
CAP km Capacity of regional collection centers)Thousand cubic meters)
CAP kh Capacity of charity centers)Thousand cubic meters)
Ci The unit of product recycling cost (USD)
Cre The unit cost for each electric device repair unit (USD)
Crw The unit cost for each wooden appliance repair unit (USD)
Cd The unit cost for the cost of unit of product disposal (USD)
TRkg l T The unit cost for the K type product transport unit from consumers to local collection centers with the T type transport vehicle (USD)

TRkl m T The unit cost for the type K transport product unit from the collection centers to the regional collection centers with the type T transport vehicle (USD)
TRkm i T The unit cost for the K type product transport unit from the regional collection centers to the recycling centers with the T type transport vehicle (USD)
TRkm r T The unit cost for the type K transport product unit from the regional collection centers to the repair centers by type T transport (USD)
TRkm h T The unit cost for the K type product transport unit from the regional collection centers to the charity centers with the type T transport vehicle (USD)
TRkm l T The unit cost for the K type product transport unit from the regional collection centers to the disposal centers with the type T transport vehicle (USD)
TRkr h T The unit cost for the type K transport product unit from the repair centers to the charity centers with the type T transport vehicle (USD)
disg l The distance between consumer centers and local collection centers (km)
disl m The distance between local collection centers and regional collection centers (km)
dism i The distance between the regional collection centers and the recycling centers (km)
dism r The distance between the regional collection centers and the repair centers (km)
dism h The distance between regional centers and charity centers (km)
dism d The distance between the regional collection centers and the disposal centers (km)
disr d The distance between repair centers and charity centers (km)
a Percentage of products transmitted from regional collection centers to recycling centers.
b Percentage of products which can be repaired and transferred to repair centers.
m Percentage of products donated directly to the charity center from the regional collection center.
q Percentage of products from the regional collection center enters the disposal centers.
tT Capacity of T type vehicle for carriage of type K products between different centers (cubic meter)
Vk Volume of K type product.
U Number of available vehicles
s Represents a particular scenario of the set U
prs ifpenDs The probability of occurrence of each scenario s.
The unit of cost for penalty due to excess capacity allocated to centers (USD)
The amount of capacity exceed in scenario s (Thousand cubic meters).

Table 5
Decision variables of the model.

Symbol Definition

X Tk gls
The quantity of K type product which is transported from the consumer centers to the local collection centers by T type transport vehicle

X Tk lms
The quantity of K type product which is sent from local collection centers to regional collection centers by T type transport vehicle
X Tk mis
The quantity of K type product which is transported from the regional collection centers to the recycling centers by T type transport vehicle
X Tk mrs
The quantity of K type product which is transported from the regional collection centers to the repair centers by T type transport vehicle
X Tk The quantity of K type product which is transported from the regional collection centers to the charity centers by T type transport vehicle
mhs
X Tk mds
The quantity of K type product which is transported from the regional collection centers to the disposal centers by T type transport vehicle
X Tk rhs
The quantity of K type product which is transported from the repair centers to the charity centers by T type transport vehicle
n The optimal number of needed vehicles which are operational

Table 6
Definition of binary variables.

Symbol Definition

Ym If regional collection centers are located at a potential location 1, otherwise 0.

Yh If charity centers are located at a potential location 1, otherwise 0.

X X X X
q X Tk l m  X Tk m d cT; K; m (7) X Tk l m  Ym CAP Km cK (9a)
l d T;l m

X X X X
X Tk m r ¼ X Tk r h cT; K; r (8) X Tk m h  Yh CAP Kh cK (9b)
m h T;m h
6 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717

P the second term is the variance of the objective function. A is the

k;T;g;l VK  X Tk g l weight of response variance depending on decision-maker and is
n1< n (10)
tT selected by the degree of risk aversion in the decision-maker.
Obviously, there is a second-order term in this equation making
P the desired model non-linear. The function (20) enables the inter-
k;T;l;m VK  X Tk l m
n1< n (11) action between the decision-makers’ preference and system plan-
tT ning of a reverse logistics network so as to optimally balance the
objectives of system operating costs and the degree of risk aversion.
P
k;T;m;i VK  X Tk m i
n1< n (12)
tT
P 4.8. Robust model linearization
k;T;m;r VK  X Tk m r
n1< n (13)
tT Yu and Li suggested the use of absolute deviation instead of the
variance to convert the second-order part of the problem to first-
P
k;T;m;h VK  X Tk m h order and its linearization as follows:
n1< n (14)
tT X X  X 

MinZ ¼ prs ðZÞ þ A prs Z  prs ðZÞ (21)
P T s s s
k;T;m;d VK  X k m d
n1< n (15) Although the above equation (21) includes the absolute value
tT
term, two variables can be added to become a linear equation.
P Finally, the following term is added to the objective functions.
k;T;r;h VK  X Tk r h
n1< n (16) X  
tT A prs g þ 
s þ gs (22)
s
nU (17) Thus, the proposed model based on the scenario-based
approach is as follows:
Ym ; Yh 2f0; 1g (18)
X X X
Fm Ym þ Fh Yh þ TRKg l T  disg l
X Tk g l ; X Tk l m ; X Tk m i ; X Tk m r ; X Tk m h ; X Tk m d ; X Tk r h 0 (19) m h K;g;l;T;s
X
Constraint (2) indicates that the number of products transferred X TK gls þ TRKlm T  disg l  X TK lms
K;l;m;T;s
from consumer center to collection center is equal to the number of  
X
products transferred from local collection center to regional þ Ci þ TRKm i T  dism i X TK mis
collection center. Constraint (3) represents the number of 2 K;m;i;T;s 3
consumed appliances transferred to local collection centers. Con- P  
straints (4), (5), (6), and (7) are the percentages of appliances 6 þ Cre þ  dism r TRKm r T X TK m r s 7
6 7
transferred to recycling, repair, charity, and disposal centers. 6 K;m;r;re;T;s 7
X 6 6 X   7
7
Constraint (8) indicates that the repaired products are directly Min Z ¼ prs 6 þ Crw þ TRKm r T  dism r X TK 7
6 mrs 7
transferred to charities. Constraints (9-a) and (9-b) are related to s 6 K;m;r;rw;T;s 7
6 P 7
the capacities of regional collection centers and charities. Con- 6 7
4 þ TRKm h T  dism h  X TK m h s 5
straints (10) to (16) are related to the size of vehicles (trucks). K;m;h;T;s
Constraint (17) shows that the optimal number of vehicles is equal X  
or less than the current vehicles. Constraint (18) is the binary var- þ Cd þ TRKm d T  dism d X TK mds
iables and Constraint (19) indicates the non-negative variable of the K;m;d;T;s
model. P
þ TRKr h T  disr h
K;r;h;T;s

4.7. Scenario-based model X TK P P

r h sþ A1 prs ðg þ 
s þg s ÞþA2 prs Ds j infPen
s s;j
This proposed model assumed that the number of used products (23)
by consumers has an uncertain nature among the input parameters.
In order to model the problem under uncertainty, the scenario- X X
based approach (two-level) was used in this study. Assume that U X Tk g l s ¼ X Tk l m s c s2U cT; K; l (24)
is the set of all possible scenarios which can occur in the future and g m
S is a specific scenario from this set. Two concepts in relation to
stability include response and model stability. In response stability, X
X Tk g l s ¼ PK s c s2U cK (25)
the optimal response of the model for each scenario is close to T;g;l
optimal value while the response of the model for each scenario is
almost feasible in model stability. Now, the variance is added. X X
a X Tk l m s  X Tk m i s c s2U cT; K; m
X X h X i2
i
l
MinZ ¼ prs ðZÞ þ A prs Z  prs ðZÞ (20)
s s s (26)
Based on the above equation, the first term is the average and
 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717 7

X X The last part in objective function is for considering penalty

b X Tk l m s  X Tk m r s c s2U cT; K; m which is referred to the capacity shortage or to consider excess
l r capacity allocated to centers in each scenario. Furthermore, as the
(27) above equation indicates, the limitations (41), (42), and (43) are
related to the change of variable and linearization of stable model.
X X
m X Tk l m s  X Tk m h s c s2U cT; K; m
l h 5. Numerical example and model solution
(28)
The illustrative example formulates a small-scale model
X X reflecting a real-world decision-making problem of reverse logis-
q X Tk l m s  X Tk m d s c s2U cT; K; m tics network planning. In the proposed problem which is applied on
l d a real-case in Mashhad metropolitan in north-west of IRAN, the
(29) municipality tries to establish an infrastructure to reuse the variety
of household appliances. The municipality environmental policy to
X X
X Tk m r s ¼ X Tk r h s c s2U cT; K; r (30) reduce urban solid waste and help the low-income families moti-
m h vates us to design a logistic network for it. Currently there is no
optimum logistic network for collecting and reuse second-hand
X X home appliances in the city, and only by a case-by-case telephone
X Tk l m  Ym CAP Km þ Ds1 (31)
T;l m call system the second-hand goods are collected from the citizens
by 70 numbers of trucks. The municipality can dedicated 10 con-
X X sumer regions, three local collection centers, three regional
X Tk m h  Yh CAP Kh þ Ds2 (32) collection centers, three disposal centers, two recycling centers,
T;m h
two electronic device repair centers, two wooden appliance repair
center, and three charity centers for the project. Moreover, 70
P
k;T;g;l;s VK  X Tk g l s numbers of trucks with two vehicle types and different capacities
n1< n (33)
tT (80 and 70 thousand cubic meters) can be used for transporting the
second-hand products in three groups of A, B, and C.
P Since the amount used and second-hand products by consumers
k;T;l;m;s VK  X Tk l m s have uncertainty, the scenario-based approach was used and five
n1< n (34)
tT different scenarios were defined to cope with this uncertainty. The
scenario1, 2, 3, 4, and 5 are occurred with the probabilities of 0.15,
P
k;T;m;i;s VK  X Tk m i s 0.23, 0.2, 0.17, and 0.25, respectively. The values of each model
n1< n (35) parameter are shown in Table 7.
tT
The results of calculations run in GAMS software mode 32 in-
P dicates the optimal values of flow of all types of second-hand
k;T;m;r;s VK  X Tk m r s products among the centers (Xs) and also the result minimizes
n1< n (36)
tT the total costs through selecting the combination of facilities
(collection centers and charity centers, Local collection centers,
P Regional collection centers, Disposal centers, Recycling centers,
k;T;m;h;s VK  X Tk m h s
n1< n (37) Electric device repair shop and Wooden appliance repair shop) in
tT
one year period of time with shorter distances. Fig. 2 depicts the
P reuse network and the optimum determined quantities of each
k;T;m;d;s VK  X Tk m d s decision variable on the cross edges. In the optimal solution of
n1< n (38)
tT overall system performance the optimal values of the objective
function is equals to 2453500 USD. As shown, such values follow
P the uniform distribution.
k;T;r;h;s VK  X Tk r h s
n1< n (39) The results obtained from GAMS software are shown in Fig. 2
tT and the optimal values of each decision variable were obtained
under five different scenarios. For example, the optimal number of
nU (40) product A including the electric devices and small tables, which
X were transferred from consumer center 2 to local collection center
Z prs ðZÞ ¼ g þ 
s  gs cs2U (41) 3 by transportation vehicle 2, was 239 under the first scenario, 204
s under the second scenario, 277 under the third scenario, 218 under
the fourth scenario, and 282 under the fifth scenario. The optimal
gþ
s t  M c s2U (42) number of product B (oven, table, and chair) which were trans-
ferred from consumer center 7 to local collection center 1 by
g c s2U transportation vehicle 2 were 41, 80, and 64 under the second,
s  ð1  tÞ  M (43)
fourth, and fifth scenarios, respectively. As observed, the first and
third scenarios did not occur for this product (the optimal value
Ym ; Yh ; t2f0; 1g (44)
under this scenario was 0). The optimal number of product C
(furniture and big refrigerator) from consumer center 2 to coaction
X Tk g l s ; X Tk l m s ; X Tk m i s ; X Tk m r s ; X Tk m h s ; X Tk m d s ; X Tk r h s ; g þ 
s ; gs ; M center 3 by transportation vehicle 2 was 202 under the second
scenario and the optimal value of the variable under other sce-
0
narios was 0 (in this case, only the occurrence of scenario 2 was
(45) optimal). Similar analysis is applicable for other variables. Based on
8 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717

Table 7
Parameters values.

parameter Value parameter value

a 0.35 TRkg l T round (uniform (7,10) USD)

b 0.4 TRkl m T round (uniform (3,8) USD)
m 0.1 TRkm i T round (uniform (2,5) USD)
q 0.15 TRkm r T round (uniform (2,5) USD)
U 70 TRkm h T round (uniform (3,7) USD)
A1 80 (Thousand cubic meters) TRkm l T round (uniform (4,6) USD)
A2 60 (Thousand cubic meters) TRkr h T round (uniform (2,5) USD)
infpen 100 (USD) disg l round (uniform (10,40))
Pk s round (uniform (200,300)) disl m round (uniform (10,40))
Fm round (uniform (15000,25000) USD) dism i round (uniform (10,40))
Fh round (uniform (5000,10000) USD) dism r round (uniform (10,40))
CAP km round (uniform (20,30)) dism h round (uniform (10,40))
CAPkh round (uniform (20,30)) dism d round (uniform (10,40))
Ci round (uniform (2,7) USD) disr d round (uniform (10,40))
Cre round (uniform (3,6) USD) tT round (uniform (1000,1500))
Crw round (uniform (5,10) USD) Ds j round (uniform (100,300))
Cd round (uniform (2,5) USD)

D1 D3

T2
T2
T2 Regional
Collection/ S1=162.062
center1 S2=0
S3=0
S4=0
T2 T1
T2 L1 S5=0
G2 T1 Product: B
S1=239
S1=0 T2
S2=204
S2=41 S3=277
S3=0 S4=187
S4=80 S1=223 S1=95.6
S5=165 S2=81.6
S5=64 S2=213 S1=0
Product: A S3=287 S2=0 S3=110.8
Product: B
S1=223 T2 S4=189 S3=0 S4=74.8
T2 S2=213 T2 S5=66
S5=167 S4=10.850
S3=287 Product: B S5=40.950 Product: A
S4=189 Product: A I1
S5=167 S1=0
S1=239
Product: B S2=14.350
S2=204
S1=54 S3=0 S1=89.2
S3=277
S2=0 S4=28 S2=85.2
S4=218 S1=78.050
S3=0 S5=22.4 S3=114.8
S5=282 S1=0 S2=74.550
L2 S4=37 Product: B S4=75.6
G7 Product: A S2=41 S3=100.450 S5=60.8
S5=109 S3=0
Product: C S4=66.150 Product: B
S4=80 S5=58.450
S1=0
S5=64
S2=0
Product: B
Product: B I2
S3=0
S4=31 S1=18.9
S5=117 S2=0
Product: A S3=0
S4=12.950
S5=38.15 RE1
S1=238 T2 Product: C S1=0
S2=202 Regional
S1=83.3 S2=16.4
T2 S3=230 Collection/ S3=0
S2=70.7
S4=185 center2 S3=80.5 S4=32
S5=163
S4=64.75 S1=0 S5=25.6 RE2
Product: c S2=0 Product: B
S1=292 S5=57.050
S2=0 L3 Product: C S3=0
G4 T2 S3=230 T2 S4=12.4
S4=0 S1=0,S2=0,S3=0,S4=3.1,S5=11.7, S1=95.2 S5=46.8
S5=272 S1=261.7,S2=4.1,S3=0 Product: A S2=80.8 Product: A
Product: c S4=126.1,S5=6.4 S3=92
Product: B S4=74
T1 S5=65.2 S1=0
Product: C S2=0
S3=0 T2 RW1
S4=12.4
S5=46.8
H3 H1 Product: A

Fig. 2. The optimum solution for reuse logistics network.

 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717 9

Fig. 3. As Table 8 indicates, in this sensitivity analysis, the values A2

6000000
and infpen (capacity exceed fine) were considered as fixed while the
objec ve func on(USD )

4.9070E+6
5000000 values A2 were changed to evaluate the sensitivity of objective
3.2714E+6
4000000 function than A2 .
3000000 2.4535E+6 As Fig. 3 shows, the value of objective function increases by
2000000 1.6357E+6 increasing A2 value. In fact, the value of objective function increases
1000000 by increasing the weight on the response variance. It reveals that
0 the objective function increases dramatically with A2 increase, up
0 20 40 60 80 100 120 140 to three times in the basic case. According to the direct effect of the
capacity ratio on objective function, the decision-makers should
A2
balance the total network capacity (A1) toward the total demands
(A2) to avoid creating the surplus costs.
Fig. 3. The change of the value of the objective function by changes in A2 .

6.2. Sensitivity analysis on infpen (penalty)

the outcomes of the optimal result, several managerial implications
are summarized as follows:
The number of available vehicles was 70 while the number of
vehicles which should be operational is 23. In other words, after
developing and optimizing the total network transportations costs
reduced by 67% compared to current situation.
1. More than %75 of vehicle types which are implemented for
transporting the used product in the proposed network is type 2
which is the bigger one (heavy capacity). Although the vehicle
type 1 has been used mostly between regional collection and
repair centers and charity centers. It refers that utilizing the
heavy capacity trucks are preferable, excluding the collecting
activities.
2. Near 6000 number of used appliances are collected and sent to
the charity centers. The 50% of the products are coming from
collection centers and the rest from repair centers. According to
the results, 1150 number of products are type A, 2200 Numbers
are type B, and 2650 numbers are type C, with total cost of ac-
tivities equal to 2453500 USD. This could be a magnificent
outcome according to the environmental and energy-saving
factors.
6. The proposed logistics network sensitivity analysis by
parameters changes
This section focused on the model behavior for the change in the
values of some parameters.
6.1. Sensitivity analysis on capacity ratio
We are interested on how the capacity factor impacts the de-
cision making. A “capacity ratio” is defined that is the total network
capacity (A1) ratio to the total demands (A2). This ratio is vary from
2 to 1.2 to obtain a series of Pareto frontiers which are shown in
In the section, sensitivity of the objective function into penalty
due to excess capacity allocated to the centers would be investi-
gated. As Table 9 indicates, in this sensitivity analysis, the values A1
and A2 were considered fixed while the infpen (capacity exceed
fine) values were changed to evaluate the sensitivity of objective
function against infpen changes.
As Fig. 4 shows, the value of objective function increases by
increasing infpen value. In other words, the network costs increase
with the increase of capacity exceed fine. However, the slope of
these changes in values 0e300 has some fluctuations. It is noted,
when capacity exceed would be considered for centers to
compensate surplus used product to be recovered in the network,
the total cost would be extremely increase. Thus, decision-makers
have to trade-off between service and reuse to surplus second-
hand home appliance and network expense.
7. Conclusion
In this study the second-hand home appliance direct reuse
problem is considered and the mathematical optimization model of
a reverse logistic network was optimally designed. In addition,
some charities were addressed to donate some of these second-
hand appliances to the low-income families. The proposed model
was multi-level, multi-product, and mixed integer linear pro-
gramming (MILP). The scenario-based approach was used to cope
with the existed uncertainty. This study is of significance in two
respects including economic and environmental. In terms of eco-
nomic perspective, the purpose of the designed network was to
reduce the costs (e.g. operating costs, transportation costs, etc.) and
from the environmental perspective, the reverse logistic network
was designed and optimized to collect a variety of used appliances
to manage the solid wastes and prevent their entry to the envi-
ronment by considering the recovering options such as recycling,
repair, etc. On the other hand, a part of these second-hand appli-
ances was presented to charities for low-income families. In sum-
mary, this is the first study that considers all types of household

Table 8
The amount of changes in the objective function for changes in.A2 .

changes in A2 (Thousand cubic meters) Objective function (USD)

A1 ¼ A2 ¼ 40 infpen ¼ 100 1.6357E þ 6

80
A1 ¼ A2 ¼ 60 infpen ¼ 100 2.4535E þ 6
80
A1 ¼ A2 ¼ 80 infpen ¼ 100 3.2714E þ 6
80
A1 ¼ A2 ¼ 120 infpen ¼ 100 4.9070E þ 6
80
10 A. Sadrnia et al. / Journal of Cleaner Production 244 (2020) 118717

Table 9
The amount of changes in the objective function by changes in.infpen.

Changes in Infpen (USD) Objective function (USD)

A1 ¼ A2 ¼ 60 infpen ¼ 0 0
80
A1 ¼ A2 ¼ 60 infpen ¼ 10 2.4535E þ 5
80
A1 ¼ A2 ¼ 60 infpen ¼ 100 2.4535E þ 6
80
A1 ¼ A2 ¼ 60 infpen ¼ 200 3.6803E þ 6
80
A1 ¼ A2 ¼ 60 infpen ¼ 300 7.3606E þ 6
80
A1 ¼ A2 ¼ 60 infpen ¼ 500 1.2268E þ 7
80
A1 ¼ A2 ¼ 60 infpen ¼ 750 1.8401E þ 7
80
A1 ¼ A2 ¼ 60 infpen ¼ 1000 2.4535E þ 7
80

Funding
30000000
objec ve func on (USD )

2.4535E+7
25000000 No funding was received for this work.
1.8401E+7
20000000
1.2268E+7
Intellectual property
15000000
10000000 We confirm that we have given due consideration to the pro-
5000000 3.6803E+6 7.3606E+6 tection of intellectual property associated with this work and that
there are no impediments to publication, including the timing of
0 2.4535E+6
publication, with respect to intellectual property. In so doing we
0 200 400 600 800 1000 1200 confirm that we have followed the regulations of our institutions
infpen (USD) concerning intellectual property.

Research ethics
Fig. 4. The change of the value of the objective function by changes in infpen.

We further confirm that any aspect of the work covered in this

appliances, develops a charity location problem in a reverse logistic manuscript that has involved human patients has been conducted
network, and focuses on reuse of household appliances without any with the ethical approval of all relevant bodies and that such ap-
repair or recovery. The obtained results reveal that utilizing the provals are acknowledged within the manuscript.
heavy capacity trucks are preferable, excluding the collecting ac- IRB approval was obtained (required for studies and series of 3
tivities. Moreover a great number of used products could be or more cases).
transported in a circular economy by a reasonable cost that has Written consent to publish potentially identifying information,
efficient positive environmentally impacts. The sensitivity analysis such as details or the case and photographs, was obtained from the
of objective function variations toward capacities, and inter- patient(s) or their legal guardian(s).
network demands, indicate that accepting this ratio is significant We confirm that the manuscript has been read and approved by
to preventing the surplus costs. all named authors.
This study is expected to help the municipality managers We confirm that the order of authors listed in the manuscript
around the world to design and implement a reuse network of has been approved by all named authors.
charities. The proposed network helps low-income families and
expands the sustainable supply chain networks. Besides, optimal Declaration of competing interest
flow of second-hand appliances through a widespread network of
charities could help to minimize the life expenses and environ- No conflict of interest exists.
mental costs.
The limitations of the study are ignoring the 3-dimensional Acknowledgements
loading constraints to ease the heavy trucks loading and unloading
activities, and not specifying the exact routs in the network. This work was supported by Quchan University of Technology
Applying these limitations requires more complicated mathemat- [grant number 8110].
ical formulations and heuristic solution algorithms. However, an
important managerial limitation is the quality evaluation of the References
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