Abstract
Environmental responsibility plays a significant role in the firm’s agendas nowadays. In this paper, we address the environmental operations of reverse logistics. Here we developed an integrated supply chain model with coordinated production and remanufacturing due to time-dependent rates. To study the problem we consider the demand to be satisfied with newly manufactured (produced) and the remanufactured products, so there is no difference between manufactured and remanufactured items. The shortages are allowed and excess demand is backlogged as well. The returned items are collected from the end user to be remanufactured. Optimal expression is obtained for the acceptable returned quantity, maximum inventory level, production and remanufacturing scheduling period, and the total average cost. Illustrative examples, which explain the application of the theoretical results as well as their numerical verifications, are given. The sensitivity of these solutions to change in underling parameter values is also discussed.
Highlights
Environmental issues are gaining reasonable attention among society, worldwide
We address the environmental operations of reverse logistics
Due to the governmental regulations and consumer concerns regarding these environmental issues, an increasing number of companies have focused on reduction efforts in the amount of waste stream, diversion of the discarded products, and disposition of the retired products properly whereas reverse logistics is the process of retrieving the product from the end consumer for the purposes of proper disposal
Summary
Environmental issues are gaining reasonable attention among society, worldwide. Consumer demand for clean manufacturing and recycling is increasing. The first reverse logistic model was investigated by Schrady 1 He analyzed the problem in the EOQ model for repairable items which assumes that the production and repairing rates are instantaneous without disposal cost. Konstantaras and Papachristos have investigated an inventory model for stability In his work he extended the work of Koh et al 9 and followed a different analysis to obtain closed form expressions for both optimal number of set up in the recovery and the ordering processes. A closed-loop supply chain inventory model is developed by Yang et al 24 , in press In this paper he considers price-sensitive demand and multiretailer and analysis of the problem with three optimization methods sequential optimization, a centralized optimization without benefit sharing, and a centralized optimization with benefit sharing.
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