Lot Size Model for Reverse Logistics with Quadratic Demand

Abstract

Taking care of nature is the prime responsibility of the companies nowadays. This chapter proposes inventory model with reverse logistics for environmental concerns. Customers return used products and after remanufacturing such products they become as good as new products. Now, demand is satisfied by newly produced as well as remanufactured products. Quadratic demand is discussed in the present inventory model. Such demand increases initially and after sometimes it shows decreasing pattern. Shortages are also allowed to take place. Optimal cost is worked out for the present system. Numerical example and sensitivity analysis are given to validate mathematical model and to find critical inventory parameters. Based on it, managerial issues are discussed.