In this paper, we address the problem of locating collection centers for a company that collects used products from product holders. Each product holder has an inherent willingness to return the product, and makes the decision on the basis of financial incentive offered by the company. We present a mixed-integer nonlinear facility location-allocation model to find the optimal locations, the optimal incentive values for different product types and the optimal vehicle type. Because the problem is NP-complete, a heuristic method is proposed to solve medium and largesize instances. We experiment with location dependent transportation costs which reflect the road conditions and other geographical factors. We conclude that the location dependent transportation cost approach is inferior to fixed transportation cost approach resulting in a higher loss of profit when the variation of the cost with respect to location is relatively high.


Originally published in the Proceedings of the 2008 Northeast Decision Sciences Institute Conference, Brooklyn, New York, March 28-30, 2008 (CD-ROM)


End of life products, Collection facilities

Subject Categories

Recycling (Waste (etc.))





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Copyright 2008, Surendra M. Gupta

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Gupta M. Surendra

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