Quantitative Decision-Making Techniques for Reverse/Closed-Loop Supply Chain Design

2007 ◽  
pp. 105-214
Author(s):  
Kishore K. Pochampally ◽  
Satish Nukala ◽  
Surendra M. Gupta
2014 ◽  
Vol 24 (3) ◽  
pp. 669-682 ◽  
Author(s):  
D. Thresh Kumar ◽  
Hamed Soleimani ◽  
Govindan Kannan

Abstract Interests in Closed-Loop Supply Chain (CLSC) issues are growing day by day within the academia, companies, and customers. Many papers discuss profitability or cost reduction impacts of remanufacturing, but a very important point is almost missing. Indeed, there is no guarantee about the amounts of return products even if we know a lot about demands of first products. This uncertainty is due to reasons such as companies’ capabilities in collecting End-of-Life (EOL) products, customers’ interests in returning (and current incentives), and other independent collectors. The aim of this paper is to deal with the important gap of the uncertainties of return products. Therefore, we discuss the forecasting method of return products which have their own open-loop supply chain. We develop an integrated two-phase methodology to cope with the closed-loop supply chain design and planning problem. In the first phase, an Adaptive Network Based Fuzzy Inference System (ANFIS) is presented to handle the uncertainties of the amounts of return product and to determine the forecasted return rates. In the second phase, and based on the results of the first one, the proposed multi-echelon, multi-product, multi-period, closed-loop supply chain network is optimized. The second-phase optimization is undertaken based on using general exact solvers in order to achieve the global optimum. Finally, the performance of the proposed forecasting method is evaluated in 25 periods using a numerical example, which contains a pattern in the returning of products. The results reveal acceptable performance of the proposed two-phase optimization method. Based on them, such forecasting approaches can be applied to real-case CLSC problems in order to achieve more reliable design and planning of the network


2019 ◽  
Vol 11 (15) ◽  
pp. 4237 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Wei Li

The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.


2020 ◽  
Vol 12 (20) ◽  
pp. 8398
Author(s):  
Juan Pedro Sepúlveda-Rojas ◽  
Rodrigo Ternero

Purpose: This article analyzes the value of information and coordination in a closed loop supply chain (CLSC) and discusses the benefits of a global or local optimization approach and the impact of uncertainty. Methodology: A theoretical dyadic closed loop supply chain is analyzed where the manufacturer re-manufactures products returned by customers, producing “as good as new products” for the retailer. Twelve coordination scenarios were analyzed. For the definition of these scenarios, a framework based on two criteria was proposed: value of information and perimeter of decision making. Findings: Information on returns leads to lower costs than information on demand. In the presence of complete or partial coordination between the actors in the supply chain, it is preferable to have low product return rates. However, if we are in the complete absence of coordination, high rates of return are more convenient as they function as a buffer against uncertainties. The perimeter of decision making (global or local optimization) does not significantly improve the supply chain performance in relation to its costs. Only the exchange of information improves its performance. Therefore, companies should make efforts to exchange information, first, on their lot sizes, then on their returns and finally, on the customer demand. Originality: The novelty of our work relies on an analysis of the closed loop supply chain performance with the simultaneous presence of information, coordination, and uncertainty.


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