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A vendor-purchaser economic lot size problem with remanufacturing and deposit

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Author Info

  • Dobos, Imre
  • Gobsch, Barbara
  • Pakhomova, Nadezhda
  • Pishchulov, Grigory
  • Richter, Knut

Abstract

An economic lot size problem is studied in which a single vendor supplies a single purchaser with a homogeneous product and takes a certain fraction of the used items back for remanufacturing, in exchange for a deposit transferred to the purchaser. For the given demand, productivity, fixed ordering and setup costs, amount of the deposit, unit disposal, production and remanufacturing costs, and unit holding costs at the vendor and the purchaser, the cost-minimal order/lot sizes and remanufacturing rates are determined for the purchaser, the vendor, the whole system assuming partners' cooperation, and for a bargaining scheme in which the vendor offers an amount of the deposit and a remanufacturing rate, and the purchaser responds by setting an order size. --

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Bibliographic Info

Paper provided by European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics in its series Discussion Papers with number 304.

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Date of creation: 2011
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Handle: RePEc:zbw:euvwdp:304

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Related research

Keywords: Joint economic lot size; Reverse logistics; Closed loop supply chain; Collection; Remanufacturing; EOQ;

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  1. Rajeev Kohli & Heungsoo Park, 1989. "A Cooperative Game Theory Model of Quantity Discounts," Management Science, INFORMS, vol. 35(6), pages 693-707, June.
  2. 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.
  3. Hill, Roger M., 1997. "The single-vendor single-buyer integrated production-inventory model with a generalised policy," European Journal of Operational Research, Elsevier, vol. 97(3), pages 493-499, March.
  4. Sucky, Eric, 2005. "Inventory management in supply chains: A bargaining problem," International Journal of Production Economics, Elsevier, vol. 93(1), pages 253-262, January.
  5. Richter, Knut & Dobos, Imre, 1999. "Analysis of the EOQ repair and waste disposal problem with integer setup numbers," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 463-467, March.
  6. Affisco, John F. & Javad Paknejad, M. & Nasri, Farrokh, 2002. "Quality improvement and setup reduction in the joint economic lot size model," European Journal of Operational Research, Elsevier, vol. 142(3), pages 497-508, November.
  7. Mitra, Subrata, 2009. "Analysis of a two-echelon inventory system with returns," Omega, Elsevier, vol. 37(1), pages 106-115, February.
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