Reverse Supply Chain Network Design Considering Quantity Discount and Collection Policies

Efficient management of product retrieval and recycling activities in reverse supply chains generates valuable opportunities for businesses to gain more competitive advantages through economic benefit maximization. However, there is a limited scope in the appropriate selection of quantity discount and collection policies for products sold out or collected after use among supply chain members, which are critical for improving supply chain effectiveness. The study addresses this gap by incorporating these crucial policies into a Mixed integer linear programming (MILP) model. The model especially investigates various parameters such as product pricing, collection rates, and recycling rates, and is then applied to a case study located in the Mekong Delta region to determine the optimal design of a container supply chain, including suppliers, depots, collection units, recycling units, and customers. The resulting model demonstrates that the proposed policies enhance economic benefits and generate a better balance of interest between stakeholders in the regional supply chain