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An inventory model with dependent product demands and returns

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  • Kiesmuller, Gudrun P.
  • van der Laan, Erwin A.

Abstract

In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Production Economics.

Volume (Year): 72 (2001)
Issue (Month): 1 (June)
Pages: 73-87

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Handle: RePEc:eee:proeco:v:72:y:2001:i:1:p:73-87

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  1. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
  2. van der Laan, Erwin & Salomon, Marc, 1997. "Production planning and inventory control with remanufacturing and disposal," European Journal of Operational Research, Elsevier, vol. 102(2), pages 264-278, October.
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Cited by:
  1. Sophie Bernard, 2011. "Remanufacturing," Documents de travail du Centre d'Economie de la Sorbonne 11027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Takahashi, Katsuhiko & Morikawa, Katsumi & Myreshka & Takeda, Daisuke & Mizuno, Akihiko, 2007. "Inventory control for a MARKOVIAN remanufacturing system with stochastic decomposition process," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 416-425, July.
  3. Gong, Qiguo & Lai, K.K. & Wang, Shouyang, 2008. "Supply chain networks: Closed Jackson network models and properties," International Journal of Production Economics, Elsevier, vol. 113(2), pages 567-574, June.
  4. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
  5. Nenes, George & Panagiotidou, Sofia & Dekker, Rommert, 2010. "Inventory control policies for inspection and remanufacturing of returns: A case study," International Journal of Production Economics, Elsevier, vol. 125(2), pages 300-312, June.
  6. Toktay, B. & van der Laan, E.A. & de Brito, M.P., 2003. "Managing Product Returns: The Role of Forecasting," ERIM Report Series Research in Management ERS-2003-023-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.

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