Managing production and inventory in a remanufacturing supply chain with two classes of cores under consignment stock agreement

Abstract

This paper addresses the production scheduling and inventory management in a closed‐loop supply chain that recycles both high‐quality and low‐quality cores and makes products using cores and new raw materials. The manufacturing/remanufacturing supply chain consists of a vendor and a buyer, and they collaborate under a consignment stock (CS) agreement. We investigate and compare three operation policies under the CS agreement, covering continuous and intermittent production manners and shipments of equal and unequal batch sizes. For each operation policy, we develop a mixed integer nonlinear programming model to jointly optimize the production sequence of two classes of cores, production cycle length, shipment frequency, and shipment batch sizes, with the objective of minimizing the cost rate. By analyzing the respective decisions and conducting an extensive numerical study with various scenarios, we explore the advantages and applications of each operation policy. Based on our research findings, we provide general guidelines and criteria for operation policy selection.

On a Closed-Loop Supply Chain with Graded Returns

“…Returns with only two quality levels are considered by Cai et al [3] and Zhu et al [36]. While Cai et al use stochastic dynamic programming to derive the optimal acquisition pricing and production policy, Zhu et al use mixed integer nonlinear programming to optimize the production sequence, production cycle length, shipment frequency, and shipment batch sizes.…”

A preemptive goal programming for multi‐objective cooperative games: an application to multi‐objective linear production

“…However, when there are many players who control the pool of resources, the main target of the production programming problem is to determine how an achievable allocation should be divided among the players. A few studies show that cooperative game with characteristic function forms is an effective method to solve the distribution problem (see e.g., Osicka et al., 2019; Mohebbi et al., 2021; Zhu et al., 2024). Thus, cooperative games have often been used to determine how to allocate the total revenues of the production programming problem among the players in a fair manner.…”