Reverse Logistic Network Design and Analysis for Plastic Bottles A Case Study in Dire Dawa City
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Date
2018-07
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Addis Ababa University
Abstract
Currently, the concept of reverse logistic is attracting due attention due to the developmental agenda of environmental sustainability and related economic advantages obtained through recycling and reuse of resources. One of the challenges in reverse logistics has been the lack of appropriate framework for analyzing and designing reverse logistic of used products such as plastic bottles. In this study, the design and analysis of reverse logistics in Ethiopia taking a case of Dire Dawa city has been conducted. Dire Dawa city has been affected due to huge volumes of plastic bottles being dumped in the surrounding environment. This has led to several environmental problems and has a negative influence on the drainage system of the city. It has also influenced the beauty of the city and created dreadful image of the city as plastic is not easily decomposed by its nature. Therefore, this thesis focused on analyzing and designing effective reverse logistic system for plastic bottles in the aforementioned case. To achieve the research objectives, a literature review was conducted so as to develop the clear concept of reverse logistic, its activities, processes, networks, challenges, barriers affecting implementation of reverse logistic and provided an overview on plastic bottle recycling. Appropriate data required for the case study were collected using primary and secondary sources. Using the data collected, a linear programing problem was solved by LINGO 17.0 programming software and the solution attained were used to design to minimize total transportation cost of the truck, during the collection of plastic bottles from the destination. The performance of the truck route and proposed network was analyzed using Arena 14.50.00002 simulation software. The research followed three scenarios for truck route in the collection of plastic bottles from all destinations in the city. The baseline for scenario was taken as the current practice in the city. Based on the scenario analysis, around 3,585 ,893.5 plastic bottles/week was collected and made ready for recycling. Following these data, the estimated monthly financial revenue to be generated would be around $160,297.824. Hence, the study found out that such amount of opportunity can be exploited if appropriate design of reverse logistics networks can be developed. In the study, it is recommended that the government bodies/top management should work on organizing and supporting the informal sectors which are work on recycling of plastic bottles and create awareness for the community on how to separate plastic bottles from other organic waste at home levels. Further research areas are also indicated in the study.
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Keywords
Dire Dawa City, plastic bottles, Reverse logistic, network design