Sustainable reverse logistics network design: a case of waste electrical and electronic equipment management

Abstract In this study, we develop a reverse logistics network design model to recover value from waste electrical and electronic equipment (WEEE) under uncertainty. We propose a multi‐objective, multi‐period, and multi‐product optimization model under uncertainty, focusing on economic, environmental, and social aspects for the WEEE management organization in India. The uncertainty associated with the price of reprocessed items, as well as the quantity and quality of product returns, is captured using the scenario generation technique. The augmented ε $\varepsilon$ ‐constraint method is employed to address the multi‐objective optimization problem to generate Pareto‐optimal solutions. Our model incorporates the modular capacity expansion and inventory management aspects that accommodate the resilience of the reverse logistics network. Our results show that strategic inventory management can yield better outcomes from a sustainability perspective in the presence of fluctuating prices of reprocessed items. Furthermore, we observe that when the quality of the product returns decreases, the profit and social benefits decrease.