Optimal policy for a closed-loop supply chain inventory system with remanufacturing

✍ Scribed by Shen-Lian Chung; Hui-Ming Wee; Po-Chung Yang

• Publisher: Elsevier Science
• Year: 2008
• Tongue: English
• Weight: 885 KB
• Volume: 48
• Category: Article
• ISSN: 0895-7177
• DOI: 10.1016/j.mcm.2007.11.014

✦ Synopsis

Previous researchers have developed ways of managing forward-oriented supply chains, and gave insight to solve single-stage inventory systems. In this study, we analyze an inventory system with traditional forward-oriented material flow as well as a reverse material flow supply chain. In the reverse material flow, the used products are returned, remanufactured and shipped to the retailer for resale. A multi-echelon inventory system with remanufacturing capability is proposed. We then develop a closed-loop supply chain inventory model and maximize the joint profits of the supplier, the manufacturer, the third-party recycle dealer and the retailer under contractual design. The analytical results of this study show a significant increase in the joint profit when the integrated policy is adopted.