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A closed-loop supply chain for deteriorating products under stochastic container return times

Author

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  • Kim, Taebok
  • Glock, Christoph H.
  • Kwon, Yongjang

Abstract

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.

Suggested Citation

  • Kim, Taebok & Glock, Christoph H. & Kwon, Yongjang, 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Omega, Elsevier, vol. 43(C), pages 30-40.
  • Handle: RePEc:eee:jomega:v:43:y:2014:i:c:p:30-40
    DOI: 10.1016/j.omega.2013.06.002
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    References listed on IDEAS

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    Cited by:

    1. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.
    2. Iassinovskaia, Galina & Limbourg, Sabine & Riane, Fouad, 2017. "The inventory-routing problem of returnable transport items with time windows and simultaneous pickup and delivery in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 570-582.
    3. repec:eee:proeco:v:189:y:2017:i:c:p:1-13 is not listed on IDEAS
    4. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    5. repec:gam:jsusta:v:10:y:2018:i:3:p:668-:d:134218 is not listed on IDEAS
    6. Schmitt, Thomas G. & Kumar, Sanjay & Stecke, Kathryn E. & Glover, Fred W. & Ehlen, Mark A., 2017. "Mitigating disruptions in a multi-echelon supply chain using adaptive ordering," Omega, Elsevier, vol. 68(C), pages 185-198.
    7. repec:spr:opsear:v:54:y:2017:i:4:d:10.1007_s12597-017-0309-6 is not listed on IDEAS
    8. Zhang, Qinhong & Segerstedt, Anders & Tsao, Yu-Chung & Liu, Biyu, 2015. "Returnable packaging management in automotive parts logistics: Dedicated mode and shared mode," International Journal of Production Economics, Elsevier, vol. 168(C), pages 234-244.
    9. Cobb, Barry R., 2016. "Inventory control for returnable transport items in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 53-68.

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