Reverse Logistics Network Design and Optimization in the Context of Circular Economy: A Case Study from Turkiye
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Keywords:
Circular Economy, Reverse Logistics, Network Design, MILP, CVRP, Sustainability, Route Optimization, RecyclingAbstract
This study analyzes the reverse logistics network of a Turkish recycling company using
operational data from 2023–2024. Designed around circular economy principles, the network includes 5
collection centers, 3 recycling facilities, 2 remanufacturing centers, and 2 distribution centers. A Mixed
Integer Linear Programming (MILP) model was developed for network design, and a hybrid Genetic
Algorithm-Simulated Annealing (GA-SA) approach was applied to optimize transportation routes. Route
optimization achieved an average cost saving of 16,7% and an annual CO₂ reduction of 15.800 tons. The
recycling rate increased from 68,5% to 76,2%, with a 2024 target of 85%. Seven network scenarios were
evaluated using Net Present Value (NPV) analysis; the Regional Structure scenario yielded the highest
NPV of 165,2 million TL. The results confirm that structured reverse logistics network design brings
clear economic and environmental gains.
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