Abstract
Nowadays, companies are recognizing their primordial roles and responsibilities towards the protection of the environment and save the natural resources. They are focusing on some contemporary activities such as Reverse Logistics which is economically and environmentally viable. However, the integration of such an initiative needs flows restructuring and supply chain management in order to increase sustainability and maximize profits. Under this background, this paper addresses an inventory control model for a reverse logistics system that deals with two separated types of demand, for new products and remanufactured products, with different selling prices. The model consists of a single shared machine between production and remanufacturing operations, while the machine is subject to random failures and repairs. Three stock points respectively for returns, new products and remanufactured products are investigated. Meanwhile, in this paper, a modeling of the problem with Discrete-Event simulation using Arena® was conducted. Regarding the purpose of finding, a near-optimal inventory control policy that minimizes the total cost, an optimization of the model based on Tabu Search and Genetic Algorithms was established. Computational examples and sensitivity analysis were performed in order to compare the results and the robustness of each proposed algorithm. Then the results of the two methods were compared with those of OptQuest® optimization tool.
Highlights
Chain Management (SCM) encompasses all the resources, means, methods, tools and techniques that drive all processes and flows to transform raw materials into final products deliverable to customers
This paper addresses an inventory control model for a reverse logistics system that deals with two separated types of demand, for new products and remanufactured products, with different selling prices
This paper investigated a reverse logistics system that deals with two types of customer demands, one for new products and the second for remanufactured products with different selling prices
Summary
Chain Management (SCM) encompasses all the resources, means, methods, tools and techniques that drive all processes and flows to transform raw materials into final products deliverable to customers. Across the SCM, the coordination and integrating decisions of the important functions such as production planning, procurement, inventory control and distribution management may lead to obtaining an optimal strategy that minimizes total costs for the entire company for a given service level (Simchi-Levi et al, 2004) It is a matter of anticipating needs and being able to deliver the right product, where it is necessary, when necessary, while ensuring control of quantity and quality. RL addresses significant environmental problems and creates competitive opportunities in the market It includes the reuse of returned and used products from the customers and try to give a new life for the End-of-Life (EOL) products through different recovery processes (Dev et al, 2019). These recovery processes can occur on repair, refurbishing, remanufacturing, cannibalization, recycling and incineration (De Brito & Dekker, 2003)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
