Single Supplier Research Articles

Mechanism Design for Online Resource Allocation

This paper concerns the mechanism design for online resource allocation in a strategic setting. In this setting, a single supplier allocates capacity-limited resources to requests that arrive in a sequential and arbitrary manner. Each request is associated with an agent who may act selfishly to misreport the requirement and valuation of her request. The supplier charges payment from agents whose requests are satisfied, but incurs a load-dependent supply cost. The goal is to design an incentive compatible online mechanism, which determines not only the resource allocation of each request, but also the payment of each agent, so as to (approximately) maximize the social welfare (i.e., aggregate valuations minus supply cost).We study this problem under the framework of competitive analysis. The major contribution of this paper is the development of a unified approach that achieves the best-possible competitive ratios for setups with different supply costs. Specifically, we show that when there is no supply cost or the supply cost function is linear, our model is essentially a standard 0-1 knapsack problem, for which our approach achieves logarithmic competitive ratios that match the state-of-the-art (which is optimal). For the more challenging setup when the supply cost is strictly-convex, we provide online mechanisms, for the first time, that lead to the optimal competitive ratios as well. To the best of our knowledge, this is the first approach that unifies the characterization of optimal competitive ratios in online resource allocation for different setups including zero, linear and strictly-convex supply costs.

Not all PLA filaments are created equal: an experimental investigation

PurposeAdditive manufacturing (AM) methods such as material extrusion (ME) are becoming widely used by engineers, designers and hobbyists alike for a wide variety of applications. Successfully manufacturing objects using ME three-dimensional printers can often require numerous iterations to attain predictable performance because the exact mechanical behavior of parts fabricated via additive processes are difficult to predict. One of that factors that contributes to this difficulty is the wide variety of ME feed stock materials currently available in the marketplace. These build materials are often sold based on their base polymer material such as acrylonitrile butadiene styrene or polylactic acid (PLA), but are produced by numerous different commercial suppliers in a wide variety of colors using typically undisclosed additive feed stocks and base polymer formulations. This paper aims to present the results from an experimental study concerned with quantifying how these sources of polymer variability can affect the mechanical behavior of three-dimensional printed objects. Specifically, the set of experiments conducted in this study focused on following: several different colors of PLA filament from a single commercial supplier to explore the effect of color additives and three filaments of the same color but produced by three different suppliers to account for potential variations in polymer formulation.Design/methodology/approachA set of five common mechanical and material characterization tests were performed on 11 commercially available PLA filaments in an effort to gain insight into the variations in mechanical response that stem from variances in filament manufacturer, feed stock polymer, additives and processing. Three black PLA filaments were purchased from three different commercial suppliers to consider the variations introduced by use of different feed stock polymers and filament processing by different manufacturers. An additional eight PLA filaments in varying colors were purchased from one of the three suppliers to focus on how color additives lead to property variations. Some tests were performed on unprocessed filament samples, while others were performed on objects three-dimensional printed from the various filaments. This study looked specifically at four mechanical properties (Young’s modulus, storage modulus, yield strength and toughness) as a function of numerous material properties (e.g. additive loading, molecular weight, molecular weight dispersity, enthalpy of melting and crystallinity).FindingsFor the 11 filaments tested the following mean values and standard deviations were observed for the material properties considered: pa = 1.3 ± 0.9% (percent additives), Mw = 98.6 ± 16.4 kDa (molecular weight), Ð = 1.33 ± 0.1 (molecular weight dispersity), Hm = 37.4 ± 7.2 J/g (enthalpy of melting) and = 19.6 ± 2.1% (crystallinity). The corresponding mean values and standard deviations for the resulting mechanical behaviors were: E = 2,790 ± 145 MPa (Young’s modulus), E’ = 1,050 ± 125 MPa (storage modulus), Sy = 49.6 ± 4.93 MPa (yield strength) and Ut = 1.87 ± 0.354 MJ/m^3 (toughness). These variations were observed in filaments that were all manufactured from the same base polymer (e.g. PLA) and are only different in terms of the additives used by the manufacturers to produce different colors or different three-dimensional printing performance. Unfortunately, while the observed variations were significant, no definitive strong correlations were found between these observed variations in the mechanical behavior of the filaments studied and the considered material properties.Research limitations/implicationsThese variations in mechanical behavior and material properties could not be ascribed to any specific factor, but rather show that the mechanical of three-dimensional printed parts are potentially affected by variations in base polymer properties, additive usage and filament processing choices in complex ways that can be difficult to predict.Practical implicationsThese results emphasize the need to take processing and thereby even filament color, into account when using ME printers, they emphasize the need for designers to use AM with caution when the mechanical behavior of a printed part is critical and they highlight the need for continued research in this important area. While all filaments used were marked as PLA, the feedstock materials, additives and processing conditions created significant differences in the mechanical behavior of the printed objects evaluated, but these differences could not be accurately and reliably predicted as function of the observed material properties that were the focus of this study.Originality/valueThe testing methods used in the study can be used by engineers and creators alike to better analyze the material properties of their filament printed objects, to increase success in print and mechanical design. Furthermore, the results clearly show that as AM continues to evolve and grow as a manufacturing method, standardization of feedstock processing conditions and additives would enable more reliable and repeatable printed objects and would better assist designers in effectively implementing AM methods.

Towards Systemic Handling of Requirements in the Oil and Gas Industry – a Case Study

AbstractThis paper presents valuable insights on implementation of requirement management system in the oil and gas industry. The focus on cost reduction in this industry has led to an urgent need for a more systematic requirement handling.The paper presents a survey asking international oil and gas actors for status and needs with respect to requirement management. Furthermore, the paper presents experiences from implementing a Requirement Management System at a major supplier in the industry.The international survey confirms that the oil and gas industry is lagging behind other industries when it comes to implementation of systematic requirement handling. A second result is that the paper shows a clear positive effect when implementing a requirement management system at a single supplier. In conclusion, by implementing such a system, the industry will limit the number of requirement, save cost, and reduce the need for testing and validation. To achieve this, companies will need management support and collaboration across the supply chain. A cross‐industry implementation would result in a significant effect, both in terms of reduced cost and increased flexibility.

Modeling and Solution Algorithm for Fourth-Party Logistics Routing Problem Based on Service Composition

Aiming at the problems of limited transportation resources and high transportation costs of a single third-party logistics supplier, our research proposes a route planning model based on service combination from the perspective of fourth-party logistics, which aims to find the route with minimum total cost under the premise of meeting customer needs. In order to improve solution efficiency, a specific genetic algorithm is designed. The algorithm adopts backtracking idea and adaptive operations, which can avoid infeasible solution caused by strict constraints, while reducing the time required for crossover and mutation operations to repair infeasible solutions. In addition, Dijkstra-based heuristic algorithm, traditional genetic algorithm and traditional ant colony algorithm are implemented. The comparison of computational experiments on different scales instances shows that the specific genetic algorithm can obtain the optimal solution in small-scale instances, and the solution quality in large-scale problems is better than other algorithms.

Maintenance Supplier Selection: Evaluating the Effect of Maintenance and Sourcing Strategies

The advent of the globalization and outsourcing of products and services has resulted in more networked, highly dependent firms in supply chains; so supply chains’ vulnerability to several risks such as equipment breakdown is increased. Although optimizing maintenance supplier selection has a vital role in supply chain performance, it has not received enough attention in the literature. Due to the effect of maintenance strategies and supplier selection approaches, in this paper, three scenarios are considered based on various strategies as follows: 1-Preventive Maintenance with single supplier selection (PMs), 2- Preventive Maintenance with multiple supplier selection (PMm), and 3-Condition Based Maintenance with multiple supplier selection (CBMm). A fuzzy goal programming approach is applied to make trade-offs between several objectives. The efficacy of the model is validated through numerical examples, and results are compared to investigate the effect of implementing each scenario. The results show that in situations that reducing unreliability cost has higher priority for a decision-maker, CBMm is more efficient than other scenarios.

Analysis of the uniform conclusion of agreements for the purchase of goods, works, services by a budgetary organization with a single supplier

Importance. The problem of using non-competitive methods of determining a supplier, contractor, performer in the framework of the procurement activities of an educational organization worries various subjects of the contract system of the Russian Federation, from customers to control bodies involved in the regulation of procurement activities and compliance with legislation in the field of procurement of goods, works, services. Making purchases from a single supplier violates the implementation of certain principles of the contract system, contributes to the limitation of the information base of the economic analysis of the procurement efficiency, contributes to the uneven distribution of financial resources to cover obligations to fulfill contractual obligations.Objectives. The presented study is devoted to the analysis of the uniformity of the conclusion of contracts for the purchase of goods, works, services from a single supplier of a budgetary educational organization. The author paid considerable attention to the development of a system of indicators of economic analysis of the uniformity of the conclusion of contracts, which will accelerate the turnover of goods, works, services, improve the quality of the procurement of goods, works, services and mobilize internal reserves for financing procurement.Methods. In the course of the study, the author used such general scientific methods of cognition as analysis and synthesis, consistency and complexity, as well as a logical approach to obtaining evidence and argumentation of new provisions of economic analysis.Results. An extensive way of satisfying the customer's need for goods, works, services leads to an increase in the cost of concluding contracts for the purchase of goods, works, services from a single supplier. Which seems to confirm the idea that the economical use of goods, the rationality of the procurement of works and services, the validity of calculating the initial (maximum) price of the contract with a single supplier contribute to an increase in procurement and the profitability of costs for its implementation.Conclusions and Relevance. From these facts, one may conclude that the calculation and interpretation of the values of the indicators of the analysis of the uniformity of the conclusion and execution of contracts for the purchase of goods, works, services from a single supplier will make it possible to develop recommendations for the customer in the field of observing the principle of uniform distribution of financial resources and the formation of provisions of the main local financial documents of an educational institution aimed at increasing the effectiveness of economic procurement activities.

Practice of the Appeal Board of the Federal Criminal Service of Russia (scientific review of the most significant cases considered in the first quarter of 2020)

In this review of the decisions of the Appeals Board of the Federal Criminal Service of Russia, the authors consider cases for the first quarter of 2020, containing legal positions important for maintaining uniformity of the law enforcement practice of antitrust authorities. Thus, the first of the cases considered shows the importance of observing the procedure for considering cases of violation of antitrust legislation, in particular, the procedure for forming a commission, the violation of which will lead to the annulment of acts of the territorial antitrust authority. In the second case, the Appeal Board of the Federal Civil Service of Russia addresses the question of the validity of concluding a state contract with a single supplier. The third solution considered addresses the always pressing problem of proving unfair competition.

A Multi-Item Replenishment Problem with Carbon Cap-and-Trade under Uncertainty

Recently, as global warming has become a major issue, many companies have increased their efforts to control carbon emissions in green supply chain management (GSCM) activities. This paper deals with the multi-item replenishment problem in GSCM, from both economic and environmental perspectives. A single buyer orders multiple items from a single supplier, and simultaneously considers carbon cap-and-trade under limited storage capacity and limited budget. In this case we can apply a can-order policy, which is a well-known multi-item replenishment policy. Depending on the market characteristics, we develop two mixed-integer programming (MIP) models based on the can-order policy. The deterministic model considers a monopoly market in which a company fully knows the market information, such that both storage capacity and budget are already determined. In contrast, the fuzzy model considers a competitive or a new market, in which case both of those resources are considered as fuzzy numbers. We performed numerical experiments to validate and assess the efficiency of the developed models. The results of the experiments showed that the proposed can-order policy performed far better than the traditional can-order policy in GSCM. In addition, we verified that the fuzzy model can cope with uncertainties better than the deterministic model in terms of total expected costs.

Mechanism Design for Online Resource Allocation

This paper concerns the mechanism design for online resource allocation in a strategic setting. In this setting, a single supplier allocates capacity-limited resources to requests that arrive in a sequential and arbitrary manner. Each request is associated with an agent who may act selfishly to misreport the requirement and valuation of her request. The supplier charges payment from agents whose requests are satisfied, but incurs a load-dependent supply cost. The goal is to design an incentive compatible online mechanism, which determines not only the resource allocation of each request, but also the payment of each agent, so as to (approximately) maximize the social welfare (i.e., aggregate valuations minus supply cost). We study this problem under the framework of competitive analysis. The major contribution of this paper is the development of a unified approach that achieves the best-possible competitive ratios for setups with different supply costs. Specifically, we show that when there is no supply cost or the supply cost function is linear, our model is essentially a standard 0-1 knapsack problem, for which our approach achieves logarithmic competitive ratios that match the state-of-the-art (which is optimal). For the more challenging setup when the supply cost is strictly-convex, we provide online mechanisms, for the first time, that lead to the optimal competitive ratios as well. To the best of our knowledge, this is the first approach that unifies the characterization of optimal competitive ratios in online resource allocation for different setups including zero, linear and strictly-convex supply costs.

Impacts of trade credit on pricing decisions of complementary products

To explore the impacts of trade credit on the pricing decisions of complementary product manufacturers, we establish a Bertrand model of two-echelon supply chains. Such a supply chain consists of two duopolistic suppliers that provide complementary products to a monopolistic retailer in three scenarios: 1) no supplier extends trade credit, 2) only one supplier extends trade credit, and 3) both suppliers extend trade credit. We find that the impacts of trade credit on the profit of each supply chain member are dependent on the difference in the opportunity cost between the upstream suppliers that extend trade credit and the downstream retailer. If the value is negative, one supplier will increase its profit by extending trade credit, thereby enhancing the profits of the other supplier and the retailer simultaneously. Further, if the value is negative, both suppliers adopting trade credit will provide more benefits to the whole supply than only single supplier adopting it. On the contrary, if the value is positive, no party extending trade credit will benefit all participants the most.

A mathematical model for pharmaceutical supply chain coordination: Reselling medicines in an alternative market

Leftover/end of life (EOL) medications not only cause financial losses for the pharmacy but also lead to disposal costs and high governmental penalties for the pharmaceutical supplier. In this study, a two-echelon pharmaceutical supply chain (PSC), including a single pharmaceutical supplier (pharma-supplier) and a single pharmaceutical retailer (pharmacy) with one type of fixed shelf-life medicine, is analyzed. A reducing pharmaceutical wastes scheme is developed to decrease relevant costs of leftover/EOL medicines, avoid governmental penalties, and also ensure patient service level (PSL). In the proposed model, excess medications are collected from the pharmacy warehouse based on the realized demand at a specific time before the expiration date to be resold in the secondary/alternative market. The introduced model is investigated in decentralized and centralized model structures. A novel combination of buyback and shortage risk-sharing contract (B&SRS) is proposed to attain channel coordination, maximize the whole PSC profits, and motivate members to participate in the scheme. The numerical investigation demonstrates that the proposed B&SRS contract can coordinate the developed PSC, enhance the whole channel profit, and also guarantee both channel members’ profitability. Besides, the investigated model helps pharmaceutical managers to decrease EOL/expired medicines related costs and ensure PSL by making decision properly on buyback quantity.

An inventory model for a three-stage supply chain with random capacities considering disruptions and supplier reliability

This study develops an inventory model to solve the problems of supply uncertainty in response to demand which follows a Poisson distribution. A positive aspect of this model is the consideration of random inventory, delivery capacities and supplier’s reliability. Additionally, we assume supplier capacity follows an exponential distribution. This inventory model addresses the problem of a manufacturer having an imperfect production system with single supplier and single retailer and considers the quantity of product (Q), reorder points (r) and reliability factors (n) as the decision variables. The main contribution of our study is that we consider supplier may not be able to deliver the exact amount all the time a manufacturer needed. We also consider that the demand and the time interval between successive availability and unavailability of supplier and retailer follows a probability distribution. We use a genetic algorithm to find the optimal solution and compare the results with those obtained from simulated annealing algorithm. Findings reveal the optimal value of the decision variables to maximize the average profit in each cycle. Moreover, a sensitivity analysis was carried out to increase the understanding of the developed model. The methodology used in this study will help manufacturers to have a better understanding of the situation through the joint consideration of disruption of both the supplier and retailer integrated with random capacity and reliability.

What can be learned from the free destination option in the LNG imbroglio?

We examine the profitability of flexible routing by LNG cargoes for a single supplier taking into account uncertainty in the medium-term dynamics of gas markets. First, we model the trajectory of natural gas prices in Asia, Northern America, and Europe using a Threshold Vector AutoRegression representation (TVAR) in which the system's dynamics switches back and forth between high and low regimes of oil price volatility. We then use the generalized impulse response functions (GIRF) obtained from the estimated threshold model to analyze the effects of volatility shocks on the regional gas markets dynamics. Lastly, the valuation of destination flexibility in LNG supplies is conducted using a real option approach. We generate a sample of possible future regional price trajectories using Monte Carlo simulations of our empirical model and determine for each trajectory the optimal shipping decisions and their profitability. Our results portend a substantial source of profit for the industry and reveal future movements of vessels. We discuss the conditional impact of destination flexibility on the globalization of natural gas markets.

Single Item Supplier Selection and Order Allocation Problem with a Quantity Discount and Transportation Costs

In this paper, we address a single item supplier selection, economic lot-sizing, and order assignment problem under quantity discount environment and transportation costs. A mixed-integer nonlinear program (MINP) model is developed with minimization of cost as its objective, while lead-time, the capacity of the supplier and demand of the product are incorporated as constraints. The total cost considered includes annual inventory holding cost, ordering cost, transportation cost and purchase cost. An efficient and effective genetic algorithm (GA) with problem-specific operators is developed and used to solve the proposed MINP model. The model is illustrated through a numerical example and the results show that the GA can solve the model in less than a minute. Moreover, the results of the numerical illustration show that the item cost and transportation cost are the deciding factors in selecting suppliers and allocating orders.
 Keywords: Supplier selection, Economic Order Quantity, Order allocation, Mixed-integer nonlinear programming.

Retailers’ Order Timing Strategies under Competition and Demand Uncertainty

We examine retailers’ timing of order placement relative to the realization of demand uncertainty. Retailers can commit to an order before demand realization (i.e., “early order commitment”), or they can postpone ordering until they observe the demand (i.e., “delayed order commitment”). In a supply chain with duopolistic retailers and a single supplier, we develop a multistage, non-cooperative game-theoretic model to study how retailers choose their order commitment strategies. We identify market conditions and explore mechanisms that result in the supply chain members’ equilibrium behaviors and preferences. Our results indicate that both retailers adopt delayed order commitment in equilibrium when the demand variability is sufficiently high or low; whereas, early order commitment arises as an equilibrium strategy for one or both retailers when the demand variability is moderate. In the absence of production lead time or capacity restrictions, key drivers for the observed equilibrium outcomes are the retailers’ price competition, flexibility of contingent ordering, and the supplier’s responsive wholesale price decision. The configuration in which the retailers choose opposite order commitment strategies can be sustained in equilibrium for symmetric retailers when the competition is not too intense or the supplier’s production cost is sufficiently low. We extend our analysis in several directions, including the scenarios with non-zero production lead time, wholesale price premium for delayed ordering, alternative decision sequence, heterogeneous retailers, and two ordering opportunities. Our findings provide useful insights for retailers regarding the development of their order commitment strategies in a competitive environment and for suppliers regarding the order placement options to offer the retailers.

Asymmetric information in subcontracting decisions: the effects of the first mover advantage

Purpose of the paper: The article analyses, in an adverse selection set-up, the effects of the first mover advantage in subcontracting decision between a manufacturer and a supplier in the situation of asymmetric information. Methodology: The study proposes a game theory model to analyze a supply chain consisting of a single risk-neutral supplier and a single risk-neutral manufacturer facing a contract definition problem. Results: The model suggests the strategies to obtain a more convenient arrangement for the manufacturer both in screening and signaling framework. Research limitations: The empirical examination with real-life data needs to be expanded and performed in a cross-sector context. Practical implications: The model helps the manufacturer in designing the appropriate arrangement for subcontracting relations and extracting hidden information from the suppliers. Originality of the paper: Our approach provides a comprehensive quantitative analysis of the effects of the first mover advantage in manufacturer-supplier relationships.

Statistical form contents for selective survey of procurements with high corruption risks at the federal and municipal levels

The main purpose of the study is to identify the types and volumes of purchases for state and municipal needs with high corruption risks. Based on the studies, proposals have been prepared on the content of the sample statistical monitoring of procurements with high corruption risks. The expansion of statistical research in this area is provided by the National Anti-Corruption Plan for 2018–2020.The research materials include data from statistical observations, summary analytical reports of the ministries for 2014–2019, speeches by representatives of the government and science on corruption and the effectiveness of public procurement, as well as scientific publications. General scientific empirical and theoretical research methods were used. Empirical methods include the steps of collecting information and collecting official data, materials from scientific conferences and interviews. Theoretical methods provide for the formalization of the heterogeneous information received on the processes under study in the public procurement system.The results of the studies showed the need for selective statistical observation, despite the cancellation of continuous monitoring since 2015 due to the start of the full functioning of the unified information procurement system (hereinafter – the UIPS) on the website www. zakupki.gov.ru. Reports based on data from the UIPS, as well as the Federal Antimonopoly Service of Russia and the Treasury of Russia from 2015 to 2017 had been prepared by the Ministry of Economic Development of Russia and from 2018 by the Ministry of Finance of Russia. During such a transfer of authority, for example, the number of applications submitted per one competitive procedure dropped out of the number of the monitored indicators. However, since 2018, more attention has been paid to procurement on the basis of paragraphs рр. 24, 25 part 1 of article 93 of 44-FZ, providing for the possibility of concluding a contract with a single supplier due to failed tender procedures. The value of contracts on these grounds amounted to 2,755 billion rubles (or 43.78 billion US dollars) in 2018 with an upward trend in 2019, and amounted to 29% of the total value of the concluded contracts. A common way of making such purchases with high corruption risks is to conspire with participants in procurement procedures that have received the name «Battering ram operation» at electronic auctions, as well as formulating difficult conditions and high requirements for performers, with poor public examination of the state contract.In conclusion, it should be noted that selective statistical surveys should supplement the available information of the UIPS with data on procurement from a single supplier, and the selection of a separate category of contracts concluded as a result of failed procedures of a massive nature. The prepared proposals contribute to the implementation of order of the President of the Russian Federation to strengthen the effectiveness of control in the procurement of goods, works and services to ensure state and municipal needs dated December 17, 2018 No. Pr-2417 and implementing of national anti-corruption plan.

Performance of First Aid Trained Staff using a Modified START Triage Tool at Achieving Appropriate Triage Compared to a Physiology-Based Triage Strategy at Australian Mass Gatherings.

Triage at mass gatherings in Australia is commonly performed by staff members with first aid training. There have been no evaluations of the performance of first aid staff with respect to diagnostic accuracy or identification of presentations requiring ambulance transport to hospital. It was hypothesized that triage decisions by first aid staff would be considered correct in at least 61% of presentations. A retrospective audit of 1,048 presentations to a single supplier of event health care services in Australia was conducted. The presentations were assessed based on the first measured set of physiological parameters, and the primary triage decision was classified as "expected" if the primary and secondary triage classifications were the same or "not expected" if they differed. The performance of the two triage systems was compared using area under the receiver operating characteristic curve (AUROC) analysis. The expected decision was made by first aid staff in 674 (71%) of presentations. Under-triage occurred in 131 (14%) presentations and over-triage in 142 (15%) presentations. The primary triage strategy had an AUROC of 0.7644, while the secondary triage strategy had an AUROC of 0.6280, which was significantly different (P = .0199). The results support the continued use of first aid trained staff members in triage roles at Australian mass gatherings. Triage tools should be simple, and the addition of physiological variables to improve the sensitivity of triage tools is not recommended because such an approach does not improve the discriminatory capacity of the tools.

Госзакупки в коронавирус. Обзор тендерных закупок группы J05 «Противовирусные препараты прямого действия» по ФЗ-44 и ФЗ-223

Today, the epidemiological situation and the socio-economic crisis are bringing their own adjustments to our plans. Due to the introduction of a high alert regime related to the coronavirus pandemic, the authorities have introduced the temporary new rules for public procurement. The spread of COVID-19 was recognized as a circumstance of insuperable force (force majeure), inspections were cancelled, and the complaints were handled in the remote mode. In this regard, one more Government Decree No. 647 of May 08, 2020 entered into force on May 10, which defined new cases and the procedure for purchasing from a single supplier until the end of 2020. The Cabinet of Ministers adjusted the rules for calculating the time limits for purchases on non-working days under the same document. However, due to the coronavirus, single supplier tenders were not allowed for all goods, but only for those used to prevent or eliminate the consequences of the spread of coronavirus infection.

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

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.