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The impact of two-product joint lifecycles on capacity planning of remanufacturing networks

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  • Georgiadis, Patroklos
  • Athanasiou, Efstratios

Abstract

Capacity planning in the reverse channel of closed-loop supply chains (CLSCs) involves complex issues due to the different lifecycles of product offerings in combination with the variability regarding product usage time, quality level of used products and return patterns. (Georgiadis, P., Vlachos, D., Tagaras, G., 2006. The impact of product lifecycle on capacity planning of closed-loop supply chains with remanufacturing. Production and Operations Management 15; 514-527) developed a system dynamics (SD) model to study a CLSC with remanufacturing for a single product which incorporates a dynamic capacity modeling approach. We extend this SD model for two sequential product-types under two alternative scenarios regarding the market preferences over the product-types; in the first scenario, the market is considered showing no preferences, while in the second scenario, the demand over a product-type can be satisfied only by providing units of the specific type. We study how the joint lifecycles of two product-types, entry time of the second product-type to the market and used product return patterns affect the optimal policies regarding expansion and contraction of collection and remanufacturing capacities. The results of extensive numerical investigation are tested for their statistical significance using analysis of variance (ANOVA). In the first scenario, the results show that the system performs best when the two lifecycles form a trapezoid pattern for total demand while in the second scenario, when the two lifecycles form a triangular pattern.

Suggested Citation

  • Georgiadis, Patroklos & Athanasiou, Efstratios, 2010. "The impact of two-product joint lifecycles on capacity planning of remanufacturing networks," European Journal of Operational Research, Elsevier, vol. 202(2), pages 420-433, April.
  • Handle: RePEc:eee:ejores:v:202:y:2010:i:2:p:420-433
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    References listed on IDEAS

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    Cited by:

    1. Wang, Wenyuan & Wang, Yue & Mo, Daniel & Tseng, Mitchell M., 2017. "Managing component reuse in remanufacturing under product diffusion dynamics," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 551-560.
    2. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    3. repec:eee:proeco:v:190:y:2017:i:c:p:45-59 is not listed on IDEAS
    4. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    5. repec:eee:ejores:v:262:y:2017:i:3:p:1181-1195 is not listed on IDEAS
    6. Georgiadis, Patroklos & Michaloudis, Charalampos, 2012. "Real-time production planning and control system for job-shop manufacturing: A system dynamics analysis," European Journal of Operational Research, Elsevier, vol. 216(1), pages 94-104.
    7. Georgiadis, Patroklos & Athanasiou, Efstratios, 2013. "Flexible long-term capacity planning in closed-loop supply chains with remanufacturing," European Journal of Operational Research, Elsevier, vol. 225(1), pages 44-58.
    8. Sudarto, Sumarsono & Takahashi, Katsuhiko & Morikawa, Katsumi, 2017. "Efficient flexible long-term capacity planning for optimal sustainability dimensions performance of reverse logistics social responsibility: A system dynamics approach," International Journal of Production Economics, Elsevier, vol. 184(C), pages 179-192.
    9. Ondemir, Onder & Gupta, Surendra M., 2014. "A multi-criteria decision making model for advanced repair-to-order and disassembly-to-order system," European Journal of Operational Research, Elsevier, vol. 233(2), pages 408-419.
    10. Jian Li & Weihao Du & Fengmei Yang & Guowei Hua, 2014. "Evolutionary Game Analysis of Remanufacturing Closed-Loop Supply Chain with Asymmetric Information," Sustainability, MDPI, Open Access Journal, vol. 6(9), pages 1-13, September.
    11. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    12. Besiou, Maria & Georgiadis, Patroklos & Van Wassenhove, Luk N., 2012. "Official recycling and scavengers: Symbiotic or conflicting?," European Journal of Operational Research, Elsevier, vol. 218(2), pages 563-576.

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