Quantitative models for inventory and production planning in closed-loop supply chains

Akçalı, Elif; Çetinkaya, Sıla

doi:10.1080/00207541003692021

Cited by 204 publications

(61 citation statements)

References 103 publications

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“…It is widely recognised, that demand and product returns are correlated with each other (Akçalı and Çetinkaya 2011). This correlation assumption is intuitively understandable, as part of the demand eventually becomes the input into the remanufacturing process (Akçalı and Çetinkaya 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

“…This correlation assumption is intuitively understandable, as part of the demand eventually becomes the input into the remanufacturing process (Akçalı and Çetinkaya 2011). and Ketzenberg, van der Laan and Teunter (2006) modelled correlation between demand and the product returns with product returns that were a random function of the demand.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Akçalı and Çetinkaya (2011) argue closed loop supply chains (CLSCs) are generally acknowledged to be more complex than traditional supply chains due to a number of factors:…”

Section: Introductionmentioning

confidence: 99%

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The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains

Hosoda

Disney

Gavirneni

2015

European Journal of Operational Research

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We investigate the impact of advance notice of product returns on the performance of a decentralised closed loop supply chain. The market demands and the product returns are stochastic and are correlated with each other. The returned products are converted into "as-good-as-new" products and used, together with new products, to satisfy the market demand. The remanufacturing process takes time and is subject to a random yield. We investigate the benefit of the manufacturer obtaining advance notice of product returns from the remanufacturer. We demonstrate that lead times, random yields and the parameters describing the returns play a significant role in the benefit of the advance notice scheme. Our mathematical results offer insights into the benefits of lead time reduction and the adoption of information sharing schemes.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains

Hosoda

Disney

Gavirneni

2015

European Journal of Operational Research

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“…Akçalı and Çetinkaya (2011) have recently provided an overview of this body of literature and have classified it according to the assumptions of the individual studies with regard to: (a) the nature of demand and returns stream, (b) the number and function of stocking points, and (c) the form of control policy. However, Akçalı and Çetinkaya point to the fact that these studies usually assume a centralised control, and indicate that there is a need for research which deals with the issue of coordination between independent parties.…”

Section: Introductionmentioning

confidence: 99%

“…Our work seeks to address this need. Of the studies surveyed by Akçalı and Çetinkaya (2011), the work most closely related to ours is that which assumes a single-product control over an infinite horizon with constant demand and return rates and perfect substitution between manufactured and remanufactured products (see Section 4.1 in Akçalı and Çetinkaya 2011 as well as Section 7.2 in Minner and Lindner 2004). The studies by Richter (1996a, b) in particular investigated a two-stage system in an EOQ-like setting with inventories of new and used products, and sought to determine an optimal centralised control policy in terms of lot size, number of manufacturing and remanufacturing batches per order cycle, and the product reuse rate, while assuming an infinite production rate for both manufacturing and remanufacturing (the latter assumption is also shared by other researchers; see, for example, Schrady 1967, Teunter 2001.…”

Section: Introductionmentioning

confidence: 99%

A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

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In this paper, we study a closed-loop supply chain in which a single purchaser orders a particular product from a single vendor and sells it on the market. A certain fraction of used items return from the market back to the purchaser, who is responsible for collecting and returning them to the vendor. In addition to manufacturing new items, the vendor is able to remanufacture the returns into as-good-as-new items which are subsequently used to serve market demand. Our framework features the conventional joint economic lot size (JELS) model extended to include the return flow of the used items. In line with the assumptions of the JELS model, we assume a deterministic constant demand for the product. The fraction of used items returning from the market is assumed to depend on the purchaser's collection effort. To stimulate the returns, the vendor may offer the purchaser a transfer payment per item returned. The questions addressed by this study pertain to the optimal centralised control of this closed-loop supply chain, to the individually optimal policies of its members, and to the coordination within this supply chain under a decentralised control. In particular, we show that the transfer payment alone cannot coordinate the supply chain under consideration and may even fail to do so when combined with a two-part tariff -which is otherwise known to coordinate the corresponding forward supply chain. Our numerical study, though, has revealed that the combined contract is capable of substantially reducing the coordination deficit. We also introduce a novel three-part tariff which is shown to enable supply chain coordination in combination with the transfer payment.

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Mathematical Models for Sustainable Inventory and Production Plans for Component Remanufacturing Problems of OEM with Break-Even Period Determination

Malolan

Mathirajan

2020

Sustainable Supply Chains: Strategies, Issues, and Models

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Quantitative models for inventory and production planning in closed-loop supply chains

Cited by 204 publications

References 103 publications

The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains

The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains

A vendor–purchaser economic lot size problem with remanufacturing

Mathematical Models for Sustainable Inventory and Production Plans for Component Remanufacturing Problems of OEM with Break-Even Period Determination

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