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Sustainable inventory model for a three-layer supply chain using optimal waste management

Author

Listed:
  • Sumit Maheshwari

    (University of Delhi)

  • Amrina Kausar

    (University of Delhi)

  • Ahmad Hasan

    (University of Delhi)

  • Chandra K. Jaggi

    (University of Delhi)

Abstract

The major challenge faced by all the supply chains currently is to reduce supply chain (SC) costs while maintaining the flow of the items and reducing the pressure on the environment. Production of new items requires a significant amount of raw material and energy, which adds to the pressure on nature. In order to save natural resources, reusing, reworking, remanufacturing, and recycling are good alternatives. The present study is focused on developing a resource-efficient rework and remanufacturing model. For efficient control of inventory, the three layers of SC are considered to have a forward supply chain, closed-loop supply chain, and reverse supply chain. The three layers are linked with a collection centre. The collection centre holds the stock of returned items and bifurcates them into minor and major defectives. The minor defectives are sent to the rework plant, where they are reworked and made as-good-as new. The major defective items are sent to the scrap dealer. Thus, scrap dealer bifurcates them into remanufacturable and salvage items. The remanufacturable items are sent to the secondary manufacturer for the secondary product. Using analytical optimization technique, the minimal cost of the system is achieved with the optimal planning horizon. Lingo and Mathematica software are used to find out the optimal solution of the developed model. Also, sensitivity analysis is performed based on several parameters to see how parameters are robust to the objective function.

Suggested Citation

  • Sumit Maheshwari & Amrina Kausar & Ahmad Hasan & Chandra K. Jaggi, 2023. "Sustainable inventory model for a three-layer supply chain using optimal waste management," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 216-235, March.
    • Handle: RePEc:spr:ijsaem:v:14:y:2023:i:1:d:10.1007_s13198-022-01839-3
    DOI: 10.1007/s13198-022-01839-3
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    Cited by:

    1. Amrina Kausar & Ahmad Hasan & Chandra K. Jaggi, 2023. "Sustainable inventory management for a closed-loop supply chain with learning effect and carbon emission under the multi-shipment policy," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1738-1755, October.
    2. Priyanka & Sarla Pareek, 2023. "A sustainable inventory model for stochastic demand using innovative multi-item production system with reduced failure rate," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(3), pages 844-864, June.

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