Integrated Production-Inventory Model in a Multi-Echelon Closed-Loop Supply Chain with Product Returns

2012 ◽  
Vol 472-475 ◽  
pp. 3305-3311 ◽  
Author(s):  
Abu Hassan Zarina ◽  
Luong Lee ◽  
Sang Heon Lee
Keyword(s):  
Mathematical Modeling ◽  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Inventory Model ◽  
Deterministic Approach ◽  
Product Returns ◽  
Integrated Production ◽  
Closed Loop Supply Chains ◽  
Production Inventory

This paper deals with production-inventory policy in the context of multi-echelon closed-loop supply chains. The system comprises of a number of distributors, single manufacturer, single supplier and single dismantler. The objective is to develop and formulate the mathematical modeling for deterministic approach.

Modeling Closed Loop Supply Chain Systems

2012 ◽  
pp. 313-342
Author(s):  
Roberto Poles
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Inventory Control ◽  
Production Planning ◽  
Closed Loop ◽  
Economic Benefits ◽  
Reverse Supply Chain ◽  
Closed Loop Supply Chains ◽  
Operational Processes

In the past, many companies were concerned with managing activities primarily along the traditional supply chain to optimize operational processes and thereby economic benefits, without considering new economic or environmental opportunities in relation to the reverse supply chain and the use of used or reclaimed products. In contrast, companies are now showing increased interest in reverse logistics and closed loop supply chains (CLSCs) and their economic benefits and environmental impacts. In this chapter, our focus is the study of remanufacturing activity, which is one of the main recovery methods applied to closed loop supply chains. Specifically, the authors investigate and evaluate strategies for effective management of inventory control and production planning of a remanufacturing system. To pursue this objective, they model a production and inventory system for remanufacturing using the System Dynamics (SD) simulation modeling approach. The authors primary interest is in the returns process of such a system. Case studies will be referred to in this chapter to support some of the findings and to further validate the developed model.

scholarly journals Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

2019 ◽  
Vol 11 (15) ◽  
pp. 4237 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Wei Li
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Period ◽  
Closed Loop Supply Chains ◽  
Decision Making Model

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.

Consumer value considerations and adoption of remanufactured products in closed-loop supply chains

2018 ◽  
Vol 118 (2) ◽  
pp. 480-498 ◽  
Author(s):  
Yacan Wang ◽  
Benjamin T. Hazen ◽  
Diane A. Mollenkopf
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Perceived Risk ◽  
Closed Loop ◽  
Perceived Value ◽  
Perceived Quality ◽  
Consumer Acceptance ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Closed Loop Supply Chains

Purpose The success of closed loop supply chains is contingent upon consumer acceptance of remanufactured products, yet little is known about how consumers value such products. The purpose of this paper is to provide theoretical grounding for understanding consumers’ value perceptions as related to remanufactured products. Design/methodology/approach Diffusion of innovation theory and customer perceived value literature help form the theoretical model, which is tested empirically using survey data of consumers. Structural equation modeling was employed to test the hypotheses. Findings Perceived value of remanufactured products is measured as a function of perceived benefits (environmental benefits; price advantage) and perceived sacrifices (perceived quality; perceived risk), all of which are shown to impact perceived value. Additionally, perceived risk is found to partially mediate the relationship between perceived quality and perceived value. Originality/value This research makes two significant contributions. First, mid-range theory that is contextualized to the closed loop supply chain is developed to aid researchers and practitioners in better understanding the consumer’s role in the closed loop supply chain, as related to the acceptance of remanufactured products. Second, consumer acceptance of remanufactured products represents a form of supply chain demand risk that has previously been unrecognized. The results provide a foundation for incorporating this type of demand risk in to future research efforts.

An improved algorithm and solution on an integrated production-inventory model in a three-layer supply chain

2012 ◽  
Vol 136 (2) ◽  
pp. 384-388 ◽  
Author(s):  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Jinn-Tsair Teng ◽  
Gerardo Treviño-Garza ◽  
Hui-Ming Wee ◽  
Kuo-Ren Lou
Keyword(s):  
Supply Chain ◽  
Inventory Model ◽  
Integrated Production ◽  
Production Inventory ◽  
Improved Algorithm

scholarly journals Government Regulations on Closed-Loop Supply Chain with Evolutionarily Stable Strategy

2019 ◽  
Vol 11 (18) ◽  
pp. 5030 ◽  
Author(s):  
Ziang Liu ◽  
Tatsushi Nishi
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Critical Role ◽  
Theoretic Model ◽  
Local Market ◽  
Market Demand ◽  
Closed Loop Supply Chains ◽  
Population Game ◽  
The Government

The government plays a critical role in the promotion of recycling strategy among supply chain members. The purpose of this study is to investigate the optimal government policies on closed-loop supply chains and how these policies impact the market demand and the returning strategies of manufacturers and retailers. This paper presents a design of closed-loop supply chains under government regulation by considering a novel three-stage game theoretic model. Firstly, Stackelberg models are adopted to describe the one-shot game between the manufacturer and the retailer in a local market. Secondly, based on the Stackelberg equilibriums, a repeated and dynamic population game is developed. Thirdly, the government analyzes the population game to find the optimal tax and subsidy policies in the whole market. To solve the proposed model, the idea of backward induction is adopted. The results suggest that, by collecting tax and allocating subsidy, the government can influence the market demands and return rates. The centralized supply chain structure is always preferred for the government and the market. The government prefers to allocate subsidy to low-pollution, low-profit remanufactured products. The environmental attention of the government affects the subsidy policy.

Modeling Closed Loop Supply Chain Systems

2011 ◽  
pp. 157-186 ◽  
Author(s):  
Roberto Poles
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Inventory Control ◽  
Production Planning ◽  
Closed Loop ◽  
Economic Benefits ◽  
Reverse Supply Chain ◽  
Closed Loop Supply Chains ◽  
Operational Processes

In the past, many companies were concerned with managing activities primarily along the traditional supply chain to optimize operational processes and thereby economic benefits, without considering new economic or environmental opportunities in relation to the reverse supply chain and the use of used or reclaimed products. In contrast, companies are now showing increased interest in reverse logistics and closed loop supply chains (CLSCs) and their economic benefits and environmental impacts. In this chapter, our focus is the study of remanufacturing activity, which is one of the main recovery methods applied to closed loop supply chains. Specifically, the authors investigate and evaluate strategies for effective management of inventory control and production planning of a remanufacturing system. To pursue this objective, they model a production and inventory system for remanufacturing using the System Dynamics (SD) simulation modeling approach. The authors primary interest is in the returns process of such a system. Case studies will be referred to in this chapter to support some of the findings and to further validate the developed model.

scholarly journals The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

2019 ◽  
Vol 11 (5) ◽  
pp. 1420 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Low Carbon ◽  
Green Growth ◽  
Closed Loop Supply Chain ◽  
Closed Loop Supply Chains ◽  
Warranty Service ◽  
The Impact

Consumers cannot fully assess the quality of remanufactured products prior to purchase. To reduce consumer risk, closed-loop supply chains adopt a warranty strategy to enhance perceived value among customers and stimulate green growth. Based on Stackelberg game theory and considering consumers’ low-carbon and remanufactured product preferences, this paper aims to explore the decision-making efficiency of closed-loop supply chains with warranty services. The results of the study show that consumers’ confidence in purchasing remanufactured products has increased the demand for new products and remanufactured products, in turn also increasing the interest of the member companies of the supply chain, and stimulating the realization of the potential value of remanufacturing, which is conducive to green growth. When a remanufactured product warranty period meets certain conditions, the member companies of the supply chain can obtain optimal profit. The optimal warranty entity selection of a closed-loop supply chain with a warranty service depends on the warranty efficiency of each entity, thus making it necessary to examine the products of each warranty party.

Sign in / Sign up

Export Citation Format

Share Document