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An integrated production and inventory model for a whole manufacturing supply chain involving reverse logistics with finite horizon period

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  • Jonrinaldi,
  • Zhang, D.Z.
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    Abstract

    This paper proposes a model and solution method for coordinating integrated production and inventory cycles in a whole manufacturing supply chain involving reverse logistics for multiple items with finite horizon period. A whole manufacturing supply chain involving reverse logistic consists of tier-2 suppliers supplying raw materials to tier-1 suppliers, tier-1 suppliers producing parts, a manufacturer which manufactures and assembles parts from tier-1 suppliers into finished products, distributors distributing finished products to retailers, retailers selling products to end customers and a third party which collects the used finished products from end customers, dissembles collected products into parts, and feed the parts back to the supply chain. In this system, we consider a finite horizon period. A mathematical model for representing the behaviors of the system is developed. Solution methods based on decentralized and a combination of decentralized and centralized decision making process, referred to as the semi-centralized decision making process, are proposed to solve the model while the centralized decision making process is solved by a mixed integer nonlinear programming method. A numerical example is used to demonstrate the model and the solutions based on the three types of the coordination.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 41 (2013)
    Issue (Month): 3 ()
    Pages: 598-620

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    Handle: RePEc:eee:jomega:v:41:y:2013:i:3:p:598-620

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    Related research

    Keywords: Manufacturing supply chain; Production; Inventory; Integrated; Multiple items; Finite horizon period;

    References

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    14. Gou, Qinglong & Liang, Liang & Huang, Zhimin & Xu, Chuanyong, 2008. "A joint inventory model for an open-loop reverse supply chain," International Journal of Production Economics, Elsevier, vol. 116(1), pages 28-42, November.
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    Cited by:
    1. Ruiz-Benítez, Rocío & Ketzenberg, Michael & van der Laan, Erwin A., 2014. "Managing consumer returns in high clockspeed industries," Omega, Elsevier, vol. 43(C), pages 54-63.
    2. Marzieh Shahmari Chatghieh & Harri Haapasalo & Anyanitha Distanont, 2013. "Comparing Manufacturing and Services Sourcing against R&D Sourcing," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.
    3. Marzieh ShahmariChatghieh & Harri Haapasalo & Anyanitha Distanont, 2013. "A Comparison of R&D Supply Chains and Service and Manufacturing Supply Chains," International Journal of Synergy and Research, ToKnowPress, vol. 2(2), pages 73-91.

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