Reverse Logistics Network Design and Simulation for Automatic Teller Machines Based on Carbon Emission and Economic Benefits: A Study of the Anhui Province ATMs Industry

Shouxu Song, Yongting Tian and Dan Zhou
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Shouxu Song: School of Mechanical Engineering, Hefei University of Technology, Hefei 230009, China
Yongting Tian: School of Mechanical Engineering, Hefei University of Technology, Hefei 230009, China
Dan Zhou: School of Mechanical Engineering, Hefei University of Technology, Hefei 230009, China

Sustainability, 2021, vol. 13, issue 20, 1-24

Abstract: In recent years, mobile payments have gradually replaced cash payments, resulting in a gradual decline in the number of automatic teller machines (ATMs) demanded by banks. Through investigation and analysis, we determine four means to deal with decommissioned ATMs, and construct thereafter an ATM reverse logistics (RL_ATMs) network model, which includes suppliers, producers, warehouses, operators, maintenance centers, collection and inspection centers, disposal centers, remanufacturing centers, and recycling centers. This model is further expressed as a mixed integer linear programming (MILP) model. Given that an ATM recycling network has planned and batched characteristics, a percentage diversion method is proposed to transform a real multi-cycle problem to a single-cycle problem. The RL_ATMs network constructed in this study presents the two forms of ATMs, functional modules and the entire machine. We used the actual situations of the related companies and enterprises in Anhui Province and its surrounding areas, as well as major banks’ ATMs, as bases in using the LINGO software to solve the proposed MILP model with the objective function of minimizing costs and environmental emissions, and obtain the relevant companies’ launch operations. Lastly, we analyzed the relationship between coefficients in the percentage diversion method and calculation results, cost, and carbon emissions. Accordingly, we find that the number of remanufacturing and maintenance centers has no evident impact on the objective function, transportation costs account for a large proportion of the total cost, and emissions tax is small.

Keywords: automatic teller machine (ATM); reverse logistics; carbon emissions; mixed integer linear programming (MILP) model; percentage diversion method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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