A closed-loop supply chain for deteriorating products under stochastic container return times
This paper studies a two-stage supply chain where returnable transport items (RTIs) are used to ship finished products from the supplier to the buyer. Empty RTIs are collected at the buyer and returned to the supplier. The return time of RTIs is considered to be stochastic in this paper, and further finished products are assumed to deteriorate during potential delivery delays. First, the paper develops an analytical model of this supply chain, and then it discusses the properties of the model. Secondly, it presents the results of a simulation study in which the behaviour of the model is analysed. The results of our analysis indicate that the supply chain can influence both the risk of RTI stockouts at the supplier and the deterioration rate by changing the value of the return lot size of RTIs. Further, the results indicate that realising the optimal value for the RTI return lot size is especially important in case the mean return time of RTIs is short, while in case of a long RTI return lead time, an approximation of the optimal RTI return lot size is also acceptable.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 43 (2014)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
- Ranga V. Ramasesh & J. Keith Ord & Jack C. Hayya & Andrew Pan, 1991. "Sole Versus Dual Sourcing in Stochastic Lead-Time (s, Q) Inventory Models," Management Science, INFORMS, vol. 37(4), pages 428-443, April.
- Friedman, Moshe F., 1984. "On a stochastic extension of the EOQ formula," European Journal of Operational Research, Elsevier, vol. 17(1), pages 125-127, July.
- Sarker, Bhaba R. & Coates, Eyler Robert, 1997. "Manufacturing setup cost reduction under variable lead times and finite opportunities for investment," International Journal of Production Economics, Elsevier, vol. 49(3), pages 237-247, May.
- Paknejad, M. Javad & Nasri, Farrokh & Affisco, John F., 1992. "Lead-time variability reduction in stochastic inventory models," European Journal of Operational Research, Elsevier, vol. 62(3), pages 311-322, November.
- Glock, C. H., 2012. "The joint economic lot size problem: a review," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57811, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- de Brito, Marisa P. & van der Laan, Erwin A., 2009. "Inventory control with product returns: The impact of imperfect information," European Journal of Operational Research, Elsevier, vol. 194(1), pages 85-101, April.
- Liao, Hung-Chang & Tsai, Chih-Hung & Su, Chao-Ton, 2000. "An inventory model with deteriorating items under inflation when a delay in payment is permissible," International Journal of Production Economics, Elsevier, vol. 63(2), pages 207-214, January.
- Wang, Xiaojun & Li, Dong, 2012. "A dynamic product quality evaluation based pricing model for perishable food supply chains," Omega, Elsevier, vol. 40(6), pages 906-917.
- Bookbinder, James H. & Cakanyildirim, Metin, 1999. "Random lead times and expedited orders in (Q,r) inventory systems," European Journal of Operational Research, Elsevier, vol. 115(2), pages 300-313, June.
- Tijskens, L. M. M. & Polderdijk, J. J., 1996. "A generic model for keeping quality of vegetable produce during storage and distribution," Agricultural Systems, Elsevier, vol. 51(4), pages 431-452, August.
- Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
- Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
- Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 493-505, April.
- Prahinski, Carol & Kocabasoglu, Canan, 2006. "Empirical research opportunities in reverse supply chains," Omega, Elsevier, vol. 34(6), pages 519-532, December.
- He, Xin James & Kim, Jeon G. & Hayya, Jack C., 2005. "The cost of lead-time variability: The case of the exponential distribution," International Journal of Production Economics, Elsevier, vol. 97(2), pages 130-142, August.
- Hui-Ming Wee & Yu, Jonas, 1997. "A deteriorating inventory model with a temporary price discount," International Journal of Production Economics, Elsevier, vol. 53(1), pages 81-90, November.
- L. Beril Toktay & Lawrence M. Wein & Stefanos A. Zenios, 2000. "Inventory Management of Remanufacturable Products," Management Science, INFORMS, vol. 46(11), pages 1412-1426, November.
When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:43:y:2014:i:c:p:30-40. 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: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.