NDLI: Design of a government-subsidized collection system for incentive-dependent returns

Content Provider	IEEE Xplore Digital Library
Author	Tanugur, A.G. Aksen, D. Aras, N.
Copyright Year	2007
Description	Author affiliation: Bogazici Univ., Istanbul (Tanugur, A.G.)
Abstract	We address the problem of locating collection centers for a company that aims to collect used products (cores) in order to capture their remaining value by recovery operations. A pick-up strategy is in place according to which vehicles are dispatched from collection centers to the locations of product holders to transport their returns. Each product holder has an inherent willingness to return a core, and decides on the basis of the quality-dependent financial incentive offered by the company. Since the company seeks only economic profitability, the collected amounts may not be aligned with the target collection ratio imposed by the government. In this case, the government may alleviate the under-collection issue through a subsidy paid to the company for each core collected. From the government's perspective the problem is to find the minimum subsidy level while meeting the target collection ratio. We propose a bilevel programming formulation for this collection system design problem. Since the problem is NP-hard, a heuristic method is developed to solve medium and large size instances. This approach explicitly focuses on the relationship between government authorities and profit- oriented companies, and yields a frontier between the concurrent objectives of collection ratio satisfaction and subsidy minimization.
Starting Page	748
Ending Page	752
File Size	664909
Page Count	5
File Format	PDF
ISBN	9781424415281
DOI	10.1109/IEEM.2007.4419290
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2007-12-02
Publisher Place	Singapore
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Costs Profitability Government subsidy Power generation economics Companies Industrial engineering Educational institutions Bilevel programming facility location-allocation reverse logistics Environmental economics Vehicles heuristics Production
Content Type	Text
Resource Type	Article

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