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Strategic design for inventory and production planning in closed-loop hybrid systems

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  • Dev, Navin K.
  • Shankar, Ravi
  • Choudhary, Alok

Abstract

This research studies inventory and production planning in a closed-loop system while considering both manufacturing and remanufacturing. We studied five inventory and production planning models under the continuous and periodic review systems using a discrete event simulation. Under the above review policies, different demand and return rates, as well as manufacturing and remanufacturing lead times, are considered. The total recoverable and serviceable inventory costs and production order variance are considered as the main performance indicators. From the total inventory cost viewpoint, our findings reveal the trade-off between stochastic demand, stochastic lead times, and review periods. It was found that the periodic review system outperforms the continuous review system for higher values of the review period and return to demand rate ratio. Furthermore, remanufacturing demonstrates an appreciable contribution to low order variance in periodic review systems for high values of return to demand ratio and lead times.

Suggested Citation

  • Dev, Navin K. & Shankar, Ravi & Choudhary, Alok, 2017. "Strategic design for inventory and production planning in closed-loop hybrid systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 345-353.
    • Handle: RePEc:eee:proeco:v:183:y:2017:i:pb:p:345-353
    DOI: 10.1016/j.ijpe.2016.06.017
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    Cited by:

    1. Dev, Navin K. & Shankar, Ravi & Swami, Sanjeev, 2020. "Diffusion of green products in industry 4.0: Reverse logistics issues during design of inventory and production planning system," International Journal of Production Economics, Elsevier, vol. 223(C).
    2. Dominguez, Roberto & Cannella, Salvatore & Framinan, Jose M., 2021. "Remanufacturing configuration in complex supply chains," Omega, Elsevier, vol. 101(C).
    3. Jaroslav Vrchota & Martin Pech & Ladislav Rolínek & Jiří Bednář, 2020. "Sustainability Outcomes of Green Processes in Relation to Industry 4.0 in Manufacturing: Systematic Review," Sustainability, MDPI, vol. 12(15), pages 1-47, July.
    4. Ponte, Borja & Cannella, Salvatore & Dominguez, Roberto & Naim, Mohamed M. & Syntetos, Aris A., 2021. "Quality grading of returns and the dynamics of remanufacturing," International Journal of Production Economics, Elsevier, vol. 236(C).
    5. Lin, Junyi & Zhou, Li & Spiegler, Virginia L.M. & Naim, Mohamed M. & Syntetos, Aris, 2022. "Push or Pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 300(1), pages 282-295.
    6. Dominguez, Roberto & Cannella, Salvatore & Ponte, Borja & Framinan, Jose M., 2020. "On the dynamics of closed-loop supply chains under remanufacturing lead time variability," Omega, Elsevier, vol. 97(C).
    7. Ponte, Borja & Framinan, Jose M. & Cannella, Salvatore & Dominguez, Roberto, 2020. "Quantifying the Bullwhip Effect in closed-loop supply chains: The interplay of information transparencies, return rates, and lead times," International Journal of Production Economics, Elsevier, vol. 230(C).
    8. Zhou, Quan Spring & Olsen, Tava Lennon, 2018. "Rotating the medical supplies for emergency response: A simulation based approach," International Journal of Production Economics, Elsevier, vol. 196(C), pages 1-11.

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