A reverse logistics model for decaying items with variable production and remanufacturing incorporating learning effects

Abstract

In order to meet environmental concerns/regulations, suppliers often endeavour to recover the residual value of their used products through remanufacturing. In this research article, an integrated production and remanufacturing inventory model for a single supplier and a single buyer is presented. There is one production and one remanufacturing cycle for the supplier while multiple batches are considered for the buyer. Demand rate for the supplier and buyer is taken a linearly increasing function of time. It is presumed that production, remanufacturing and returned rates are demand dependent and items deteriorate while they are kept in storage. This model also incorporates the effect of learning in ordering cost, holding cost, deteriorating cost and purchasing cost for the buyer as these costs reduce cycle by cycle due to learning effect from the previous cycle. The numerical examples, sensitively analysis and graphical illustrations are given to illustrate the proposed model.