A closed-loop supply chain for deteriorating products under stochastic container return times

Kim, Taebok; Glock, C. H.; Kwon, Yong-Jang

doi:10.1016/j.omega.2013.06.002

Cited by 101 publications

(36 citation statements)

References 53 publications

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“…Subsequently, researchers focused on managing transportation processes between the supplier and the buyer, for example by assuming that production lots may be split up into equaland/or unequal-sized shipments, or that some type of constraint on the shipments has to be considered (e.g., Agrawal and Raju, 1996;Hill, 1999;Ertogral et al, 2007;Glock, 2012a). Recent works on the JELS problem focused on the management of containers in supply chains (e.g., Kim et al, 2014;Glock and Kim, 2014), environmental issues (e.g., Jaber et al, 2014), or human learning in production (e.g., Khan et al, 2014). Readers may refer to the works of Glock (2012b) and for recent reviews.…”

Section: Literature Reviewmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

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Establishing long-term relationships among the members of a supply chain has become necessary to enhance the supply chain's competitiveness in a globalized environment. Besides coordinating operational decisions, such as how much and when to produce or to order, the members of a supply chain may also share financial resources or act jointly on the capital market. This is important especially when companies have unequal access to capital, for example because they are located in countries with different economic conditions and banking policies and/or ratings. The joint financing of investments across the supply chain may thus ensure the stability of production and of the flow of products to the customers. In addition, it strengthens the established relationships among the supply chain members. This study takes up these issues and presents an integrated inventory model that considers investments jointly financed by the members of a supply chain. In particular, it considers a two-stage supply chain with a single vendor and a single buyer and assumes that the vendor has the option to invest in increasing its production rate. The buyer, however, is assumed to have better access to capital, and therefore has the option to give a credit to the vendor to invest in its productivity, which is beneficial for both parties. To consider uncertainties of the production improvement investments, a success probability for the investment is considered and modeled using a beta distribution.

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Section: Literature Reviewmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

View full text Add to dashboard Cite

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“…CLSCs include forward logistics (procurement of materials, production, and distribution) and reverse logistics (collection and processing of returned products and parts) [5,6]. Due to its bi-directional nature, returnable packaging, or returnable transport items (RTIs), is an essential element of CLSCs [7][8][9]. RTIs may be applicable to both open and closed systems and have been widely accepted in the automotive industry.…”

Section: Introductionmentioning

confidence: 99%

An Optimal Purchase Decision of Reusable Packaging in the Automotive Industry

Sim

Lee

2019

Sustainability

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Among the many components of material delivery operations, packaging is one of the foundations of secure and cost-efficient on-time delivery. Current environmental concerns have increased the popularity of returnable packaging over disposable packaging. This study considers a supply chain in the automotive industry where a single supplier adopts returnable packages for delivery operations to a single recipient. If a returnable package is not available, then an expendable package will be used as a more expensive alternative. Thus, an investment decision on the number of returnable packages must be made prior to launching a returnable packaging system. Using the actual data from an automotive supply chain, this study conducts simulated experiments, under the uncertainty of future demand and required lead time of reverse logistics, to identify the optimal quantity of returnable packages. Sensitivity analysis is then performed by varying the assumptions on operation duration, demand variability, and lead time variability. In general, the results indicate that a greater initial purchase of returnable packages is desirable for longer operation duration, higher demand variability, and higher lead time variability. However, if operation duration is short and the uncertainty is high, then there may be little benefit in using reusable packages. These results generalize the findings from previous studies. This approach and solution can enhance reliable and efficient supply chain operations in the automotive industry and may be applied to other industries where packaging is important and expensive.

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“…In our model, we have assumed the deterioration rate to be fixed and constant. The deterioration rate can be probabilistic or even depends on the lot size (Kim et al [35]). Also, we have assumed that the items deteriorate as soon as they are received in the retailer's inventory.…”

Section: Discussionmentioning

confidence: 99%

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

Giri

Sharma

2014

Optim Lett

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This study proposes a single manufacturer, single retailer integrated inventory model that includes deterioration and shortages in the retailer's inventory. The manufacturer's production process is assumed to be imperfect as it produces a certain percentage of defective items. The retailer performs a 100 % screening process immediately on receiving a lot from the manufacturer and returns the detected defective items to the manufacturer in the next delivery. The manufacturer disposes the defective items and incurs a disposal cost. To increase sales, (s)he offers a trade credit to the retailer. The retailer's wholesale price varies linearly with the credit period. The objective is to determine the optimal replenishment cycle time, the time of running out of stock, the length of the credit period and the number of lots from the manufacturer to the retailer so as to maximize the total profit of the integrated system. A solution algorithm is designed and illustrated through numerical examples. Furthermore, a sensitivity analysis is carried out to study the influence of the model-parameters on the optimal solution.

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A closed-loop supply chain for deteriorating products under stochastic container return times

Cited by 101 publications

References 53 publications

A joint economic lot size model with financial collaboration and uncertain investment opportunity

A joint economic lot size model with financial collaboration and uncertain investment opportunity

An Optimal Purchase Decision of Reusable Packaging in the Automotive Industry

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

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