After a brief introduction to the basic concepts of reverse logistics, we present a two-level location problem with three types of facility to be located in a specific reverse logistics system, named a Remanufacturing Network (RMN). For this problem, we propose a 0–1 mixed integer programming model, in which we simultaneously consider “forward” and “reverse” flows and their mutual interactions. An algorithm based on Lagrangian heuristics is developed and the model is tested on data adapted from classical test problems