Inventory model optimisation for a closed-loop retailer-manufacturer-supplier system with imperfect production, reworks and quality dependent return rate

Anindya Rachma Dwicahyani, Eva Kholisoh, Cucuk Nur Rosyidi, Pringgo Widyo Laksono and Wakhid Ahmad Jauhari

International Journal of Services and Operations Management, 2020, vol. 35, issue 4, 528-556

Abstract: This study investigates a closed-loop supply chain (CLSC) inventory model consisting of a retailer, a manufacturer and a supplier. Here, the return rate is considered to be varied which depends upon the quality level of returned items. The manufacturer performs manufacturing and remanufacturing processes to satisfy the retailer's demand. The manufacturing process is assumed to be imperfect and produces some defective items. All defective items are then reworked. Two recovery processes are considered in the model, which are remanufacturing and refurbishing. The recoverable items which cannot be perfectly recovered will be categorised as refurbishable items and then sold to the secondary market at a reduced price. A solution methodology is provided to find the optimal solutions of the model. A numerical example and sensitivity analysis are performed to show the application of the model and to understand the effects of the changes in key parameters on the model's behaviour, respectively.

Keywords: remanufacturing; closed-loop supply chain; CLCS; recovery; inventory; inventory model; refurbishing; imperfect production. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=105913 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:35:y:2020:i:4:p:528-556

Access Statistics for this article

More articles in International Journal of Services and Operations Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().