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Optimal replenishment policy for a deteriorating green product: Life cycle costing analysis

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  • Wee, Hui-Ming
  • Lee, Ming-Chang
  • Yu, Jonas C.P.
  • Edward Wang, C.

Abstract

In the last few decades, enterprises are trying to recycle the used products to reduce the negative impact on environment. This results in the need for reverse supply chain model especially for deteriorating items. The proposed model considers vendor managed inventory strategy and conducts a life cycle cost and benefit analysis for green electronic products. The mathematical analytical approach is used to solve the proposed model. The results show that selling price, deteriorating rate, holding cost, product return rate, and remanufactured quality have a significant effect on the model. This study can provide managerial insights into improving the design of a green-supply chain.

Suggested Citation

  • Wee, Hui-Ming & Lee, Ming-Chang & Yu, Jonas C.P. & Edward Wang, C., 2011. "Optimal replenishment policy for a deteriorating green product: Life cycle costing analysis," International Journal of Production Economics, Elsevier, vol. 133(2), pages 603-611, October.
    • Handle: RePEc:eee:proeco:v:133:y:2011:i:2:p:603-611
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    Cited by:

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    7. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
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    10. Islam Shamimul & Karia Noorliza & Fauzi Firdaus Bin Ahmad & Soliman Mohamed, 2017. "A review on green supply chain aspects and practices," Management & Marketing, Sciendo, vol. 12(1), pages 12-36, March.
    11. Yigit Kazancoglu & Muhittin Sagnak & Yasanur Kayikci & Sachin Kumar Mangla, 2020. "Operational excellence in a green supply chain for environmental management: A case study," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1532-1547, March.
    12. Ying Luo & Xiaowen Jie & Xiaoping Li & Liming Yao, 2018. "Ranking Chinese SMEs Green Manufacturing Drivers Using a Novel Hybrid Multi-Criterion Decision-Making Model," Sustainability, MDPI, vol. 10(8), pages 1-23, July.
    13. Widyadana, Gede Agus & Wee, Hui Ming, 2012. "An economic production quantity model for deteriorating items with multiple production setups and rework," International Journal of Production Economics, Elsevier, vol. 138(1), pages 62-67.
    14. Amit Kumar Bhardwaj & Arunesh Garg & Shri Ram & Yuvraj Gajpal & Chengsi Zheng, 2020. "Research Trends in Green Product for Environment: A Bibliometric Perspective," IJERPH, MDPI, vol. 17(22), pages 1-21, November.
    15. Zhalechian, M. & Tavakkoli-Moghaddam, R. & Zahiri, B. & Mohammadi, M., 2016. "Sustainable design of a closed-loop location-routing-inventory supply chain network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 182-214.
    16. Haolan Liao & Qianwang Deng & Yuanrui Wang, 2017. "Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand," Sustainability, MDPI, vol. 9(3), pages 1-19, February.
    17. Yang, P.C. & Chung, S.L. & Wee, H.M. & Zahara, E. & Peng, C.Y., 2013. "Collaboration for a closed-loop deteriorating inventory supply chain with multi-retailer and price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 557-566.
    18. Jonrinaldi, & Zhang, D.Z., 2013. "An integrated production and inventory model for a whole manufacturing supply chain involving reverse logistics with finite horizon period," Omega, Elsevier, vol. 41(3), pages 598-620.

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