Inventory decision-making models for a closed-loop supply chain system

Kaifu Yuan · Ya Gao

70 citations0/0 files storedInternational Journal of Production Research

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Sustainable Supply Chain Management Supply Chain and Inventory Management Logistics and Transportation Systems

Abstract

A closed-loop supply chain system is investigated. This system consists of a retailer, a manufacturer, a supplier, and a collector. The demand of the retailer is satisfied either by newly manufactured products or by remanufactured products which are comparable to the new ones in function and quality. We apply one manufacturing cycle and at least one remanufacturing cycle policy and at least one manufacturing cycle and one remanufacturing cycle policy to the manufacturer's manufacturing and remanufacturing operations, and give the corresponding procedures to determine the optimal system policy in the completely decentralised decision-making case and the completely centralised decision-making case by elimination theory and the difference function. A numerical comparison of our results with those of Chung et al. (2008 Chung, SL and Wee, HM. 2008. Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain. International Journal of Production Economics, 113(2): 528–545. [Crossref], [Web of Science ®] , [Google Scholar]. Optimal policy for a closed-loop supply chain inventory system with remanufacturing. Mathematical and Computer Modelling, 48 (5–6), 867–881) is also performed. The results are general since the manufacturer tends to adopt one manufacturing cycle and at least one remanufacturing cycle policy when the return rate is higher; otherwise, the manufacturer tends to adopt at least one manufacturing cycle and one remanufacturing cycle policy.

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References

2001MANAGING PRODUCT RETURNS FOR REMANUFACTURING 2001Eco-efficiency gains from remanufacturing 2000Inventory Management of Remanufacturable Products 2002Building contingency planning for closed‐loop supply chains with product recovery 1967A deterministic inventory model for reparable items 2006A critical assessment of motives for product recovery: the case of engine remanufacturing 1996The EOQ repair and waste disposal model with variable setup numbers 2001Economic ordering quantities for recoverable item inventory systems

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2020Remanufacturing in a competitive market: A closed-loop supply chain in a Stackelberg game framework 2011State-of-the-art sustainability analysis methodologies for efficient decision support in green production operations 2013A consignment stock coordination scheme for the production, remanufacturing and waste disposal problem 2014A mathematical model for production planning in hybrid manufacturing-remanufacturing systems 2018Optimal production-inventory policy for closed-loop supply chain with remanufacturing under random demand and return

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