Asian Journal of Research in Business Economics and Management

Over the past decade, the reverse logistics networks have been given increasing attention due to environmental regulations, increased economic importance and customer awareness. During the design of logistic network, integrating forward and reverse logistics networks is of the crucial factors in the supply chain. This paper proposes a mixed integer programming model, by considering the covering radius of combined facilities of distribution/collection, to deal with uncertainty in demand, cost, and distance parameters. The proposed model not only integrates the decision variables in designing forward/reverse supply chain networks, but also combines network design strategic decisions with tactical decisions to avoid sub-optimality caused by separate design of these networks.