Abstract
Purpose - This paper analyses the processes of collecting used non-returnable packaging. The objective is to increase the quality and quantity of recycling material used in the production of new packages.Design/methodology/approach - A reverse logistics network is proposed, nevertheless the focus of the study is addressing the collection routing problem. Specifically a new "profitable visit algorithm" based on the well-known Nearest Neighbor is proposed and tested, in both real and simulated scenarios, in order to achieve higher volume of collected material while lowering the cost of collection.Findings - The proposed algorithm is set to compete against the well-known Nearest Neighbor. The "profitable visit algorithm" showed a far better performance than the Nearest Neighbor. The latter was assessed with real data in a real scenario and was also confirmed by a simulation. Research limitations/implications - Further research should envisage stochastic models and tighter time constraints.Practical implications - Managers can use the algorithm in similar scenarios to address different routing needs. New business activities could be foreseen by starting a logistics scheme of this type. Additionally, new savings in material procurement processes could be achieved in current operations.Originality/value - The "profitable visit algorithm" introduced in this paper, showed substantial advantages. First it automatically determines the visit frequency for each client. Also, it evaluates whether a visit should be granted or not based on its "profitability". The latter ensures that even if the routing circuit is broken at any moment, the company will not lose "profit". Additionally, this research provides performance evaluation in real and simulated scenarios, which is hard to obtain in a single study.
Purpose - This paper analyses the processes of collecting used non-returnable packaging. The objective is to increase the quality and quantity of recycling material used in the production of new packages.Design/methodology/approach - A reverse logistics network is proposed, nevertheless the focus of the study is addressing the collection routing problem. Specifically a new "profitable visit algorithm" based on the well-known Nearest Neighbor is proposed and tested, in both real and simulated scenarios, in order to achieve higher volume of collected material while lowering the cost of collection.Findings - The proposed algorithm is set to compete against the well-known Nearest Neighbor. The "profitable visit algorithm" showed a far better performance than the Nearest Neighbor. The latter was assessed with real data in a real scenario and was also confirmed by a simulation. Research limitations/implications - Further research should envisage stochastic models and tighter time constraints.Practical implications - Managers can use the algorithm in similar scenarios to address different routing needs. New business activities could be foreseen by starting a logistics scheme of this type. Additionally, new savings in material procurement processes could be achieved in current operations.Originality/value - The "profitable visit algorithm" introduced in this paper, showed substantial advantages. First it automatically determines the visit frequency for each client. Also, it evaluates whether a visit should be granted or not based on its "profitability". The latter ensures that even if the routing circuit is broken at any moment, the company will not lose "profit". Additionally, this research provides performance evaluation in real and simulated scenarios, which is hard to obtain in a single study.