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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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    References listed on IDEAS

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