Inventory decisions in a closed-loop supply chain system with learning and rework

Wakhid Ahmad Jauhari, Oktiviandri Hendaryani and Nughthoh Arfawi Kurdhi

International Journal of Procurement Management, 2018, vol. 11, issue 5, 551-585

Abstract: In this study, we investigate a closed-loop supply chain model consisting of a manufacturer and a retailer. The retailer orders items from the manufacturer to satisfy the end customer's demand. The manufacturer uses both regular production and remanufacturing processes to produce items to fulfill the demand from the retailer. The returned items are collected and screened by the manufacturer for recovering process. We consider learning process in regular production and remanufacturing processes. In addition, the imperfect items produced during regular production are reworked. The model contributes to the current literature by allowing the inclusion of learning process in regular production and remanufacturing processes, imperfect items, rework and multiple cycle policy. Our objective is to optimise the percentage of the used item purchasing price per raw material cost, retailer ordering cycle, number of regular production cycles and the number of remanufacturing cycles, so that the joint expected total annual profit incurred has a minimum value. Furthermore, an algorithm is proposed to find the solutions of the proposed model. We also provide a numerical example and perform a sensitivity analysis to illustrate the model's behaviour and feasibility.

Keywords: closed-loop supply chain; reverse logistic; learning; rework; defective item; remanufacturing. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=94352 (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:ijpman:v:11:y:2018:i:5:p:551-585

Access Statistics for this article

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