A MILP Model for Design of Paper Recycling Network

Abstract

Recovery and subsequent recycling of the used products is receiving attention due to growing environmental concern, depleting natural resources and landfills. Efficient implementation of the recovery and recycling policy requires appropriate logistics structures to be designed for the flow of recyclable products from source to manufacturer. The present study develops a Mixed Integer Linear Programming (MILP) model for optimal design of recycled paper distribution network. The model helps in determining the optimal location of facilities and product flow for paper recycling network in a multi-item, multi-echelon, multi-facility environment. The expansion and contraction of requirements of the facility capacities was analyzed by conducting sensitivity analysis. The significance of segregation of relevant wastepaper at the source compared to intermediate stages could also be established. The over-estimation and under-estimation of unit cost parameters of recycling network led to only marginal deviation in the system cost. The utility of the proposed model is illustrated through a case study on an Indian recycled paper network.