Robust multiperiod inventory model considering trade-in program and refurbishment service: Implications to emerging markets

Youngchul Shin, Sangyoon Lee and Ilkyeong Moon

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 138, issue C

Abstract: We propose a closed-loop supply chain system that incorporates a trade-in program and refurbishment service simultaneously. Through the trade-in program, retailers collect used old-generation products from customers and provide them with new-generation products at a discount price. It helps to acquire the additional products required for the refurbishment service. The proposed integrated system could be useful to retailers selling the smartphone which has a high potential in emerging markets. We approximate the multistage stochastic optimization model to the robust counterpart which features a second-order cone program. Computational results provide managerial insights that could be beneficial to the retailer.

Keywords: Inventory model; Trade-in program; Refurbishment service; Closed-loop supply chain system; Robust optimization; Emerging market (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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DOI: 10.1016/j.tre.2020.101932

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