A joint inventory model for an open-loop reverse supply chain
This research focuses on an open-loop reverse supply chain, which includes a single centralized returns center (CRC) and multiple local collection points (LCPs). Each LCP receives a stream of returned products from consumers and once its inventory reaches its economic inventory level, these products are immediately delivered to the CRC. The CRC begins to handle those returned products when its inventory reaches its economic batch size. Special attention is placed on the joint inventory control and product return handling policies. The purpose of this study is to find the optimal economic delivery batch size for the LCPs as well as the optimal handling batch size for the CRC in order to minimize the long-run average cost for the open-loop reverse supply chain. An algorithm to find an optimal policy of delivery batch size for LCPs and handling batch size for CRC is developed. We present detailed discussions on how the optimal policy of delivery as well as the handling batch sizes changes with respect to changes in system parameters. We show that the formulas for optimal policies of delivery and handling batch sizes are modifications of the EOQ model. Simulation results illustrate that our model development is suitable for more general situations.
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.
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.:
- Hau L. Lee & Meir J. Rosenblatt, 1986. "A Generalized Quantity Discount Pricing Model to Increase Supplier's Profits," Management Science, INFORMS, vol. 32(9), pages 1177-1185, September.
- Kiesmuller, Gudrun P. & Scherer, Carsten W., 2003. "Computational issues in a stochastic finite horizon one product recovery inventory model," European Journal of Operational Research, Elsevier, vol. 146(3), pages 553-579, May.
- Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
- Gregory A. DeCroix & Paul H. Zipkin, 2005. "Inventory Management for an Assembly System with Product or Component Returns," Management Science, INFORMS, vol. 51(8), pages 1250-1265, August.
- Fleischmann, Moritz & Kuik, Roelof, 2003. "On optimal inventory control with independent stochastic item returns," European Journal of Operational Research, Elsevier, vol. 151(1), pages 25-37, November.
- Cho, Danny I. & Parlar, Mahmut, 1991. "A survey of maintenance models for multi-unit systems," European Journal of Operational Research, Elsevier, vol. 51(1), pages 1-23, March.
- 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.
- 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.
- Mahadevan, B. & Pyke, David F. & Fleischmann, Moritz, 2003.
"Periodic review, push inventory policies for remanufacturing,"
European Journal of Operational Research,
Elsevier, vol. 151(3), pages 536-551, December.
- Mahadevan, B. & Pyke, D.F. & Fleischmann, M., 2002. "Periodic Review, Push Inventory Policies for Remanufacturing," ERIM Report Series Research in Management ERS-2002-35-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- James P. Monahan, 1984. "A Quantity Discount Pricing Model to Increase Vendor Profits," Management Science, INFORMS, vol. 30(6), pages 720-726, June.
- Goyal, S. K., 2000. "On improving the single-vendor single-buyer integrated production inventory model with a generalized policy," European Journal of Operational Research, Elsevier, vol. 125(2), pages 429-430, September.
- Devavrat Purohit, 1992. "Exploring the Relationship Between the Markets for New and Used Durable Goods: The Case of Automobiles," Marketing Science, INFORMS, vol. 11(2), pages 154-167.
- Richter, Knut, 1996. "The extended EOQ repair and waste disposal model," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 443-447, August.
- V. Daniel R. Guide , Jr. & Gilvan C. Souza & Luk N. Van Wassenhove & Joseph D. Blackburn, 2006. "Time Value of Commercial Product Returns," Management Science, INFORMS, vol. 52(8), pages 1200-1214, August.
- Mabini, Marilyn C. & Pintelon, Liliane M. & Gelders, Ludo F., 1992. "EOQ type formulations for controlling repairable inventories," International Journal of Production Economics, Elsevier, vol. 28(1), pages 21-33, November.
- Leroy B. Schwarz, 1973. "A Simple Continuous Review Deterministic One-Warehouse N-Retailer Inventory Problem," Management Science, INFORMS, vol. 19(5), pages 555-566, January.
- Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
- van der Laan, Erwin & Dekker, Rommert & Salomon, Marc & Ridder, Ad, 1996. "An (s, Q) inventory model with remanufacturing and disposal," International Journal of Production Economics, Elsevier, vol. 46(1), pages 339-350, December.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:116:y:2008:i:1:p:28-42. 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 references are entirely missing, you can add them using this form.