Artificial Intelligence Versus Exact Methods via Inverse Logistics: a

Comparative Study

Walid ELLILI, Mounir SAMET, Abdennaceur KACHOURI

Laboratory “LETI”
University of Sfax, ENIS, BP 1173, Sfax, 3038, Tunisia
,
elliliwalid@gmail.com​, ​Mounir.Samet@enis.rnu.tn​, ​abdennaceur.kachouri@gmail.com

Abstract.
The present work is proposed to establish a comparative study between the exact method, namely,
the Algorithm Branch and Bound, in respect of the artificial intelligence approaches (the genetic
algorithms as well as the neural ones). The purpose is to highlight the artificial intelligence
noticeable performance in solving the multi- product and multi- period model through the
above-mentioned method, with the aim of providing a solution for the reverse logistics’
site-localization problem regarding end-of-life products. For the sake of reaching, a solution within
a reasonable time, however, the genetic algorithm and neural network have displayed a remarkable
ability to effectively solve the problem, as considered in relation to the assessment and sorting or
separation procedure (branch and bound algorithm), constructed within a CPLEX shopping solver.
In addition, a comparative study between the three methods is going to be established.
Keywords​​: ​Reverse logistics, Genetic Algorithm, Optimization, Branch and Bound
Algorithm, CPLEX, Neural Network
1. Introduction
It is for the purpose of maintaining customer satisfaction and environmental regulation that the
recovery of end-of-life products turns out to be a commercial and economic imperative. For this
reason, companies are required to review their recovery network structure. Hence, analysis of
reverse logistics network helps determine what collection, recycling and landfill sites to be
opened from a set of potential sites along with the flows to be maintained among these sites for
minimum logistics costs to be secured. Hence, the localization issue related problems seem
worth raising.
It is worth noting, however, that most of the relevant models have not appeared to account for a
wide range of end-of-life recuperated products. Noteworthy, also, is that most of the suggested
models have been discovered to be mono-periodic, while our advanced model is a multi-periodic
one.
In this regard, Ahluwalia and Nema (2006) have proposed a multi-objective model for the
recovery of obsolete computers in New Delhi. It helps in selected the most appropriate logistic
network configuration while minimizing logistic costs, including the extraction, storing, reuse,
recycling and landfill cost, along with dangerous products’ transportation incurred risks. As both
applied functions prove to bear different measurement units, the authors have put forward a
compound utility function, highlighting that cost prove to rise proportionally with risk costs.
In turn, Du and Evans (2008) have proposed an objective model type, enabling to determine the
collection and processing sites’ capacity in a bid to minimize the customer returns’ logistics costs
(the sites’ installation and transportation costs) as well as the recovered products’ treatment life
cycle. To resolve this problematic issue, the authors undertake to combine three algorithms:
dispersal algorithm (scatter serach), simplex algorithm and the constraint method. For validation
purposes, they have played on three data games.
An investigation of the relevant literature reveals that several models have been proposed to
model the reverse logistics sites’ localization problem. On examining the literature, however, it has
been discovered that the so far developed models appear to be based on a traditional site- location
model, to which one or two elements have been introduced to cover such reverse logistics as
capacity, the number of open facilities and the decision variables’ non-negativity. Additionally, it
has been discovered that most of the proposed models appear to be mono-periodic, which not help
in measuring the decision impacts of opening a long-term site. One could also note that most of the
literatures advanced models have been developed to cater for a reverse logistics network pertaining
to a particular structure (for a well determined type of product: computers, empty containers, etc.).
Still, some models have proved to be too difficult to adapt from one network to another.
Similarly, Ko and Avans (2007) have proposed a nonlinear mixed dynamic model useful for
locating the deposit and repair sites withing the global supply chain (direct and reverse flows) for
the 3PL (Third Party Logistics Providers) for the sake of minimizing the total logistic chain costs to
the execution period. They assume that the investment of a site’s capacity proportion appears to
vary according to customer feedback amounts. To solve such a problem, they have devised a
genetic algorithm based on a two-step heuristic.
Based on various research progress in this field, this paper attempts to make a contribution in
modeling the site location problems for reverse logistics for end of life products (various types of
products) and for different periods considered in strategic planning.
​Concerning the present work, we have established a multi-product and multi-period site location
model for reverse logistics relevant to end-of-life products. It is actually a generic model, which can
be applied on a reverse logistics network varied structure. It helps determine the state of the sites,
their openings, closings, output capacity and material flow among the various entities making up the
logistics network, over different time periods, as considered in the strategic planning. The entirety
of these decisions is accounted for in a bid to minimize logistic costs. However, we consider that
the return amount is deterministic and that the site investment capacity is fixed. To note, in the
literature, the localization problem proves to be of a hard NP type.
For the mathematical problem to be resolved, Kombass & al. (2011) have appealed to the
evaluation and separation procedure as implanted in a shopping CEPLX solver. However, the
reached results remained too limited in scope and scale, characterized with small-instance samples.
To overcome these shortcomings and reach solutions within a reasonable time, we opted for using
genetic algorithms.
Concerning the present paper, it is organized as follows: Section 1 deals with an exposition of
some elaborated research works relating to the questions of reverse supply-chain designing
problems. Section 2 proposes multi-product and multi-period site locations for reverse logistics of
end-of-life products. In section 3, the focus of interest is laid on the multi-product different
resolution frameworks through the Branch and Bound Algorithm, while the model resolution based
on the real code genetic algorithm subject of section 4. As for section 5, it bears the method
resolution via artificial neural networks. The last part coniains the major concluding remarks, and
paves the way for further potential perstives.
2 Proposals for Multi-Product/Multi-Period Site Locations Concerning
End-Of-Life Products’ Reverse Logistics
A general single objective optimization problem involves a set of n parameters (decision
 variables), a set of objective functions and a set of constraints (M equality constraints and K
inequality constraints). The objective functions and constraints depend on the decision
variables. The optimization problem is defined as follows.

2.1 The suggested hypotheses

In this model, it is assumed that:

● The collection and treatment sites’ potential location is known at time t.
● The site’s opening costs and transportation costs are known ahead.
● Each site’s capacity is limited to the period.
● The investment and disinvestment cost of a site’s capacity portion remains fixed from a period to
another.
● The various costs considered in the different nodes are: the sites’ opening cost and end-of-life
products unitary transportation cost from the clients to the treatment
● Site at the time period via the collection site. Several end-of-life products are recovered by the
company. No storage room is available in the collection site.

2.2 Formulation of the mathematical multi-product/multi-period model

The proposed mathematical model would help in determining the opening or closing of sites with
regard to each period, along with the product flow among the different sites, making up the reverse
logistics site. These steps are taken for the purpose of minimizing logistics costs and respecting the
various network sites’ capacities.

Fig. 1. ​Structure of reverse logistics network for product at end of life.

Index :​​ ​In formulating the model, we use the following sets of indices:
-I = {1... I}: Clients.
-J = {1 ... J}: potential number of collection site.
-K = {1 ... K}: potential number of recycling sites.
-K’ = {1... K '}: potential number of landfill sites.
-P = {1... P}: number of products at end-of-life products.
-T = {1... T}: number of time periods.
Data​​: ​The model elaboration entails inclusion of the following data:

- Fjt: Fixed cost for opening the collection site j in period t,

- Fkt: Fixed cost for opening the recycling site at time t,
- Fk’t: Fixed cost for opening the landfill site k in period t,
-Cpijt: Variable cost per unit for transporting the end-of-life product p from customer i to the
recycling site j in period t,
-Cpjkt : Variable cost per unit for transporting the end-of-life product p from the collection site j
to the recycling site k in period t,
-Cpjk’t : Variable cost per unit for transporting the end-of-life product from site j to the
destination landfill k in period t.
-Bjt: Collection capacity of site j in period t,
-Dkt : Capacity recycling site k in period t,
- k’t : Capacity of the landfill site K' in period t ,
-Ymax : Maximum number of collection sites to open ,
-Zmax : Maximum number of recycling sites to open ,
-Wmax: Maximum number of landfills sites to open,
-Gt: The sum of customer returns at time t.
The decision variables: ​They are necessary for the mathematical model resolution, so that the
following variables’ value could be determined:
They are necessary for the mathematical model resolution, so that the following variables’ value
could be determined:
-Yjt: Binary variable equal to 1 if the site j is opened at period t, and 0 otherwise.
-Zkt: Binary variable equal to 1 if site k is opened at period t, and 0 otherwise.
-Wk't: Binary variable equal to 1 if site k’ is opened at period t, and 0 otherwise.
-Xpijt: Quantity of consumer i end-of-life products stored and transported to the collection site j
in period t.
-Xpjkt: Quantity of end-of-life products recycled and transported from the collection site j to the
recycling site at time t.
-Xpjk’t : Quantity of end-of-life products removed and transported from the collection site to
the landfills j k at time t.

Model

The proposed mathematical model turns out to be:

To note, the relevant constraints appear to be that:
All end-of-life is collected from teir respective customers by the enterprise:

Equilibrium flows among different sites:

Respect of the available capacity:

Respect of the opening sites’ constraints:

Sites (7), (8) and (9) help ensure that once a site is shut down, the flow of incoming and outgoing
products should be zero. M is constantly large.
Observe the number of open sites:

Respect of the non-negativity constraints:

Respect of the of binary variables constraints:

 3. Resolution Methods
3.1 The exact methods
3.1.1. The Branch and Bound Algorithm
This particular algorithm is applicable into a wide array of mathemathical programming tools. It
is used in version 10 of the CPLEX software (Ben Aissa, 2011).
3.1.2. Test the model and Outcome
We apply our model on a dataset taken from the literature on the reverse logistics of electronic
products at end of life in India. Indeed, electronic products at the end of life reached 217 440
tones in 2010 in India [15]. Using a numerical example, we will illustrate how the model works
in the proposed framework a gain some insights into the proposed model. A small set of data is
prepared reflecting the real business situation. In fact, the company recovers the end of life
product of its customers to be sorted and disassembled in the collection sites. Hazardous products
will be disposed of in landfills. Materials will be transported to recycling sites. The reverse
logistics network for the application is composed of: three customers, nine collection sites, seven
recycling sites, two landfill sites, six end-of-life products and the simulations will extend over
four periods. We obtained the results using a Windows XP, Pentium 4, 2.4 GHz and 160 GB of
memory (Figure 2). Figure 3 shows potential site of collection, recycling and landfill to open in
every time.

Fig. 2.​​ Implementation of the proposed model with the case of application using the CPLEX.
 Fig. 3.​​ shows the potential location of collection sites, recycling and landfill to open each period.

The results obtained by the individual situation are given in the table below. The multi-product
mixed linear programming model and multi-period for the proposed reverse logistics network
includes 2665 variables including 72 bit and 960 constraints.

Table 1.​​ Numerical results of the application.

Execution
Constraint Total Binary variable
Time Optimal cost
number variable number
(minutes)
885 2665 72 33.5 693150

The optimal cost is found 693,150 including three collection sites, three recycling sites and two landfills are open.
CPLEX found the optimal solution after 33.5 minutes. During the fourth period, three collection sites will be open due
to the fact that the returned quantity is less important than the quantity of the first period. Thus, the proposed model
takes into account the dynamism of a reverse logistics system. Moreover, we note that when we increase the number of
periods considered in the strategic planning, logistics costs are decreased. This can be explained by the increased
quantity of the recovered end-of-life products. However, we note that the costs increase significantly in establishing a
strategic planning on 9 times. Yet, the reached findings remain limited to a small-instance restricted scale. So, we
propose to apply the genetic algorithm in a bid to achieve an optimal solution within a reasonable time.
Table 2.​​Results of the datasets
Dataset Number Total Number Runtime optimal
of variable of binary per cost
constraint variable second
s

6 1008 3689 88 23.01 57382

7 1260 4611 110 13.3 59776
8 1512 5533 132 43 976645
9 1764 6455 154 173 82853
10 6965 1476 124 1408 716233
 4. Real-coded genetic algorithms
4.1. Terminology and Definitions
The genetic algorithms (GA) constitute a type of adaptive methods typically fit for application to tackle the optimization
problems. They help greatly in reaching a solution to resolve a problem involving a set of random elements recurring
within a space including a number of potential solutions (Y. Lu, P. LU and L. Liang, 2008).
Genetic algorithms are stochastic optimization techniques that attempt to mimic the natural process of species
evolution and genetics. They act on a population of individuals subject to Darwinian selection: individuals, called
parents, better adapted to their environment survive and can reproduce. They are then subjected to similar mechanisms
to those recombinant genetics. Exchanges of genes between relatives resulting creation of new individuals, called
children that test other configurations of the search space (Ingber L. and Rosen B,1992).
Genetic algorithms are fundamentally different from other methods in the search for the optimum:
a) They act on a set of configurations (population) and not on a single point.
b) They use only the values ​of the function to be optimized, not its derivative or another auxiliary knowledge.
c) They use probabilistic transition rules (non deterministic).
4.2. The Genetic Algorithm’s structure

The flow diagram, depicted in Figure 4, highlights the genetic algorithms relevant structure. Details of the various
predominant phases, and of the mechanisms associated with each single phase, will be treated in the upcoming sections​.

Creating the initial population

Evaluation of each individual

Selection of the best individuals

Reproduction (crossover and mutation)
Result = best individual of the final population
Fig. 4.​​ The genetic algorithms corresponding structure.
4.3. ​Crossing
Several crossing modes are applied through genetic algorithms for real coding purposes. The crossing process is
exclusively limited to discrete, continuous crossing and BLX-α.
4.4. ​Discreet crossing
This type of cross is quite similar to methods used in crossing the binary genetic algorithm. It is to swap the variables
of each parent between sites randomly selected chromosome as shown in Figure 5. The crossing can be discreet to a
site, multi-site or uniform.

Fig. 5​​.Principe du croisement discret

4.5. ​Continuous Crossing
This type of crossover ensures the use of space by testing new parameter values. It is applied by parameter setting
using the following mechanism:

Where: the x​i and y​i parameters are the parameters of the same rank of two parents, and the rank of settings for both
children obtained. and two variables are taken at random from the interval [0,1]. When the crossing is asymmetrical
continuously. When the crossing is called continuous symmetrical. When the arithmetic crossover is continuous. It then
leads to a single child representing an average of the parents. In this case, it is necessary to perform a number of
crossing twice more to get as many children as parents in every generation.
4.6. ​Mutation
The mutation is to disrupt a variable of the problem; it is usually applied parameter by parameter. As for the
crossover operator, several transfer modes are possible.

● Uniform mutation
His type of mutation changes a setting by choosing a new value from uniformly random within the range defined by
domain constraints.
● Non-uniform mutation
Non uniform mutation is to alter locally the value of a parameter. It is for example possible to add or subtract to the
size of a random variable whose amplitude decreases with the number of generations:
 Where: ​τ​ is a random binary figure, a random number r as r​∈​[0, 1], gmax is the maximum number of generations
and ​β​ refers to an arbitrarily-selected positive constant.
4.7. Selection
The selection of the parents is a mechanism which sets from a given generation, individuals can reproduce to form
the next generation. During this phase, the strongest individuals (more adapted to the environment) are usually
duplicated and train parents of the current generation, while weaker individuals disappear without the ability to
reproduce.
This selection mechanism plays a very important role, firstly to direct research towards the best individuals and
secondly, to maintain the diversity of genotypes in the population.
Selection techniques are many and include here are a few:
▪ Proportional Selection
▪ Universal Stochastic Selection
▪ linear selection compared to the level
▪ Uniform selection over the rank
▪ Selection Tournament
4.8. ​The Genetic Alghorithm’s convergence
An important aspect of genetic algorithms to choose a convergence criterion. Different criteria exist for the
convergence of genetic algorithms:
▪ The problem is usually studied by imposing a maximum number of generations and stopping the search
when t = gmax. It is estimated that the algorithm has converged and the individual stronger performance in
the last generation is the desired solution.
▪ A more rigorous approach is to assume that the algorithm converges to the optimum when the adaptation of
part or all of the population is close to that of the best individual.
▪ We can also assume that the algorithm has converged when the best individual of the population no longer
changes. Simply test the variation in performance on a series of generation
4.9. Case study
Our optimization program with real coded genetic algorithms was done with Matlab according to the following
choices:
a) Database:
● I = [1...4]: 2 customers.
● J = [1 ... 5] Ymax = 4: max 4 collection site.
● K = [1 ... 4]: Zmax = 3: max 3 recycling sites.
● K '= [1 ... 3]: Wmax = 2 max 2 landfills.
● Period: [1 ... 4].
● N (population size) N-POP = 1000.
● T (maximum number of generation): 3496
● Pc (probability of continues crossing): pc = 0.9.
● Pm (mutation probability) = 0.01 pm.
● Tournament selection.
b) Numeric simulations and commentaries
 Fig. 6.​​ Quantity transported from the client to the sites along with the transportation and opening costs.
● Columns:
-Borne_collect: [1 2 3 4, 5 6 7 8]
-Borne_recyling_landfill: [9 10 11 12 13, 14 15 16 17 18, 19 20 21 22 23, 24 25 26 27 28]

● Lines:
To measure the achieved genetic algorithms performance degree, Matlab has been applied for the sake of generating
1000 instances. The solutions attained turn out to be too close to those appearing in figure 6 , highlighting well the
quantity transported to each site corresponding to each generation (collection, recycling, landfill), along with the total
transportation cost.
Columns (1->28) represent the generations corresponding to the quantities carried to each customer in different sites
(collection, recycling, landfill), while the 29th column stands for the cost function value, corresponding to each
generation. So, by means of example, if one is to take the discomfort 3496 is the latest generation .on can say that we
will carry customer 1Unit 1 to the four collection sites .For the second customer, he will carry 1 unit collectes.Ensuite
the four sites, and from the first collection site, 1Unit is transported to three recycling sites and 1 unit to two sites of
landfills .The second collection site sends 1 unit three recycling sites and 1 unit to 2 landfills. the third collection site
carries one unit to the first site recycling unit and 1 to 2 landfill sites .The fourth collection site carries one unit to the
three sites and recycling unit 1 to 2 landfill sites.Thus, the total cost turns out to be: 11600.
Hence, the latest generation should constitute the most optimal chromosome, i.e, the best product.

Fig. 7.​​ Optimal solution

According to the optimal solution achieved, as well as the logistics network practice relevant to our particular study
case, the decision variables’ pertaining values can be determined as follows: is equal to 1 if the site j (collection site) is
open at period t and 0 otherwise.

Table 3.​​ Numerical results of the application.

Execution
Total Binary variable
Time Optimal cost
variable number
(minutes)
 28 72 15 11600

When it activates the command: plot (stat (: 29)); we obtain the curve of Figure 3.15 represents the cost function
generation.

Fig. 8.​​ The costs in terms of generations

The observation of this graph allows us to notice that the "costs" gradually decreases, as the number of generations
increases, stabilizing from the 1000 generation at an average value measurement 12000; this shows the effectiveness of
genetic algorithms for the minimization of such a problem.

5. Neural Networks

5.1.General introduction to Neural Networks:

In general, a neural network can make better use of the available methods for nonlinear conventional [Moz2000]
approximation measures. This gain can be significant when the process model depends on several variables such as in
the case of processes shaping where it operates several types of nonlinearities and various physical and the artificial
neural networks require real case examples used for learning (this is called the training set). These cases must be even
more that problem is complex and that its topology is unstructured. The technological parameters.

Fig. 9.​​Schematic of the multilayer feed forward neural network [Razieh, 2015]
 Examples: Thanks to Randi’s MATLAB instruction, we have been able to generate different values concerning each
data, while respecting the s above stated interval.
Example 1: The fixed cost of opening a collection site must be set at between 10000 and 15000. So, as we have defined
the number of collection sites to 3 and the period’s duration t to 150, we obtained the figure 7 depicted result: Columns
1, 2 and 3 represent, respectively, the cost of opening the collection site 1, 2 and 3 from t = 1 to t = 150.

Fig. 10.​​ Opening cost of collection sites.

Example 2: The unit cost of transporting products collection site to the recycling site must be limited between
7 and 12.So since we have fixed the number of recycling sites to 3 and the period’s duration t is 150, we get the
result shown in figure 8:

Fig. 11​​.​ Cost of transporting products from the collection site to the recycling site.
Columns 1, 2 and 3 represent, respectively the cost of transporting products from the collection site to the open
recycling site 1, 2 and 3 from t = 1 to t = 150.
5.2.Representations graph of the total cost of a product in case the product will be transported to the customer
collection sites:
The total cost of a product is calculated while taking into account the distance between the different collection sites, the
opening cost for each site and the unit cost of transporting the client’s product to the site. This is achieved by using the
following formula:

a(i,1)=Fjt(i,1)+Djt(i,1)*Cjt*(i,1)*number_products(i)
 Fig. 12.​​ Total cost of transporting a given product from the client to the collection site number 1.

Fig.13.​​ Total cost of transporting a given product from the client to the collection site number 2

Fig. 14.​​ Total cost of transporting a given product from the client to the collection site number 3
● Learning Outcomes:
 Figures 14, 15, 16, 17, 18 and 19 represent 3D graphs of open sites (red circles) and the closed ones (blue cross).

Fig. 15.​​ Open and closed collection sites obtained before learning.

Fig.16.​​ Sites open and closed collection obtained after learning​.

Fig. 17.​​ Open and closed Recycling sites obtained befor learning
Fig. 18. ​Open and closed Recycling sites obtained after learning

Fig. 19.​​ : Open and closed landfills obtained before learning.

Fig. 20.​​ Open and closed landfills obtained after learning.

Figures 15, 17 and 19 show the results of ranking sites before the learning process. The x, y and z axis represent the
a1, a2 and a3 calculated during the generation of the database. We notice that figure 13 is very similar to figure 14, the
figure 17 is very similar to figure 18 and figure 19 is very similar to figure 20.In fact, there is a small difference due to
the learning errors. Such errors can still decrease if we increase the number of hidden neurons.

Conclusion
These methods’ weakest point lies in the fact that they seem costly in terms of both computation as well as computer
memory. To cater for such a drawback, we have opted for the genetic-algorithm and artificial neural-network based
meta heuristic methods. It has also been demonstrated that the number of training set samples have proved to be
critically important. Indeed, since the output is non-linear with respect to the methodology, it has been useful in
achieving a suitable solution within a reasonable time and minimal cost. 
​The present work puts forward a new generic model useful for application in the case of reverse logistics networks’
concept. The remarkable development witnessed in computering tools has contributed a great deal in solving such
problems, through the use of the most recent version of the Meta-heuristic based techniques. Such a program has proven
to help greatly in improving the supply chain performance, on a regular basis, by allowing for a more effective
management of activities, related to the processing and returning of recovered products. Actually, the reverse logistics’
processes turn out to be capable of yielding efficient benefits not only for companies, but also for each nation, both
economically and environmentally. Similarly, by relying on multi-product and multi-period site locations, one has been
able to implement a reverse logistics’ type of investigation regarding products at their end-life cycle.
In addition, and with regard to the single - objective problem solving case, genetic algorithms have gradually asserted
themselves as one of the most remarkably practical problem-solving techniques that turn out to be more rather robust in
respect of the conventional techniques. It is actually thanks to their ability to exploit large research spaces, with no
previous knowle, that such an advantage has been made practically achievable on a real ground. Besides, one has been
able to woirk with other optimization methods, for instance, Tabu search and simulated annealing could serve as
frameworks for future potential works.

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