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A hybrid two-stock inventory control model for a reverse supply chain

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  • Zolfagharinia, Hossein
  • Hafezi, Maryam
  • Farahani, Reza Zanjirani
  • Fahimnia, Behnam

Abstract

This paper develops an inventory control model for a reverse supply chain with separate serviceable and remanufacturable inventory stock points. Return rate is expressed stochastically as a function of product demand. Variation in demand distribution during product life-cycle is modeled using a new order-up-to replenishment policy incorporating five maximum inventory levels corresponding to five product life cycle stages. A near optimum solution to this problem is sought using a hybrid solution method integrating a discrete event simulation with a meta-heuristic search method. Real data from an Australian case company is utilized to design test experiments for model validation and evaluation.

Suggested Citation

  • Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    • Handle: RePEc:eee:transe:v:67:y:2014:i:c:p:141-161
    DOI: 10.1016/j.tre.2014.04.010
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    2. Pourmohammad Zia, Nadia & Taleizadeh, Ata Allah, 2015. "A lot-sizing model with backordering under hybrid linked-to-order multiple advance payments and delayed payment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 19-37.
    3. Liao, Haolan & Zhang, Qingyu & Li, Lu, 2023. "Optimal procurement strategy for multi-echelon remanufacturing systems under quality uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
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    5. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    6. Tosarkani, Babak Mohamadpour & Amin, Saman Hassanzadeh & Zolfagharinia, Hossein, 2020. "A scenario-based robust possibilistic model for a multi-objective electronic reverse logistics network," International Journal of Production Economics, Elsevier, vol. 224(C).
    7. Tianji Yang & Chao Fu & Xinbao Liu & Jun Pei & Lin Liu & Panos M. Pardalos, 2018. "Closed-loop supply chain inventory management with recovery information of reusable containers," Journal of Combinatorial Optimization, Springer, vol. 35(1), pages 266-292, January.
    8. Hafezi, Maryam & Zolfagharinia, Hossein, 2018. "Green product development and environmental performance: Investigating the role of government regulations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 395-410.
    9. Shen, Jiayu, 2020. "An environmental supply chain network under uncertainty," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 542(C).
    10. 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.
    11. Raquel Lopes Oliveira & Liliane Dolores Fagundes & Renato da Silva Lima & Marcelo Montaño, 2020. "Discrete event simulation to aid decision-making and mitigation in solid waste management," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 67-85, January.
    12. Dev, Navin K. & Shankar, Ravi & Choudhary, Alok, 2017. "Strategic design for inventory and production planning in closed-loop hybrid systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 345-353.

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