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

Takamichi Hosoda, Stephen M. Disney and Srinagesh Gavirneni

European Journal of Operational Research, 2015, vol. 246, issue 3, 827-836

Abstract: 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.

Keywords: Supply chain management; Closed loop supply chain; Information sharing; Random yield; Lead time (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:246:y:2015:i:3:p:827-836

DOI: 10.1016/j.ejor.2015.05.036

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