IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v238y2014i1p143-154.html
   My bibliography  Save this article

Optimisation of integrated reverse logistics networks with different product recovery routes

Author

Listed:
  • Niknejad, A.
  • Petrovic, D.

Abstract

The awareness of importance of product recovery has grown swiftly in the past few decades. This paper focuses on a problem of inventory control and production planning optimisation of a generic type of an integrated Reverse Logistics (RL) network which consists of a traditional forward production route, two alternative recovery routes, including repair and remanufacturing and a disposal route. It is assumed that demand and return quantities are uncertain. A quality level is assigned to each of the returned products. Due to uncertainty in the return quantity, quantity of returned products of a certain quality level is uncertain too. The uncertainties are modelled using fuzzy trapezoidal numbers. Quality thresholds are used to segregate the returned products into repair, remanufacturing or disposal routes. A two phase fuzzy mixed integer optimisation algorithm is developed to provide a solution to the inventory control and production planning problem. In Phase 1, uncertainties in quantity of product returns and quality of returns are considered to calculate the quantities to be sent to different recovery routes. These outputs are inputs into Phase 2 which generates decisions on component procurement, production, repair and disassembly. Finally, numerical experiments and sensitivity analysis are carried out to better understand the effects of quality of returns and RL network parameters on the network performance. These parameters include quantity of returned products, unit repair costs, unit production cost, setup costs and unit disposal cost.

Suggested Citation

  • Niknejad, A. & Petrovic, D., 2014. "Optimisation of integrated reverse logistics networks with different product recovery routes," European Journal of Operational Research, Elsevier, vol. 238(1), pages 143-154.
  • Handle: RePEc:eee:ejores:v:238:y:2014:i:1:p:143-154
    DOI: 10.1016/j.ejor.2014.03.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714002732
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lebreton, Baptiste & Tuma, Axel, 2006. "A quantitative approach to assessing the profitability of car and truck tire remanufacturing," International Journal of Production Economics, Elsevier, vol. 104(2), pages 639-652, December.
    2. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2012. "Lot sizing and quality investment with quality cost analyses for imperfect production and inspection processes with commercial return," International Journal of Production Economics, Elsevier, vol. 140(2), pages 922-933.
    3. Dobos, Imre & Richter, Knut, 2006. "A production/recycling model with quality consideration," International Journal of Production Economics, Elsevier, vol. 104(2), pages 571-579, December.
    4. Petrovic, Dobrila & Xie, Ying & Burnham, Keith & Petrovic, Radivoj, 2008. "Coordinated control of distribution supply chains in the presence of fuzzy customer demand," European Journal of Operational Research, Elsevier, vol. 185(1), pages 146-158, February.
    5. Mukhopadhyay, Samar K. & Ma, Huafan, 2009. "Joint procurement and production decisions in remanufacturing under quality and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 120(1), pages 5-17, July.
    6. Das, Kanchan & Chowdhury, Abdul H., 2012. "Designing a reverse logistics network for optimal collection, recovery and quality-based product-mix planning," International Journal of Production Economics, Elsevier, vol. 135(1), pages 209-221.
    7. Guo, Shanshan & Aydin, Goker & Souza, Gilvan C., 2014. "Dismantle or remanufacture?," European Journal of Operational Research, Elsevier, vol. 233(3), pages 580-583.
    8. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    9. Faccio, M. & Persona, A. & Sgarbossa, F. & Zanin, G., 2014. "Sustainable SC through the complete reprocessing of end-of-life products by manufacturers: A traditional versus social responsibility company perspective," European Journal of Operational Research, Elsevier, vol. 233(2), pages 359-373.
    10. Zikopoulos, Christos & Tagaras, George, 2007. "Impact of uncertainty in the quality of returns on the profitability of a single-period refurbishing operation," European Journal of Operational Research, Elsevier, vol. 182(1), pages 205-225, October.
    11. 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.
    12. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    13. Herrera, F. & Verdegay, J. L., 1995. "Three models of fuzzy integer linear programming," European Journal of Operational Research, Elsevier, vol. 83(3), pages 581-593, June.
    14. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keyvanshokooh, Esmaeil & Ryan, Sarah M. & Kabir, Elnaz, 2016. "Hybrid robust and stochastic optimization for closed-loop supply chain network design using accelerated Benders decomposition," European Journal of Operational Research, Elsevier, vol. 249(1), pages 76-92.
    2. Wang, Gang & Gunasekaran, Angappa, 2017. "Operations scheduling in reverse supply chains: Identical demand and delivery deadlines," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 375-381.
    3. Zikopoulos, Christos & Tagaras, George, 2015. "Reverse supply chains: Effects of collection network and returns classification on profitability," European Journal of Operational Research, Elsevier, vol. 246(2), pages 435-449.
    4. Panagiotidou, Sofia & Nenes, George & Zikopoulos, Christos & Tagaras, George, 2017. "Joint optimization of manufacturing/remanufacturing lot sizes under imperfect information on returns quality," European Journal of Operational Research, Elsevier, vol. 258(2), pages 537-551.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:238:y:2014:i:1:p:143-154. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eor .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.