IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v45y2024i1p130-147.html
   My bibliography  Save this article

Inventory cooperation strategies between one supplier and two recycling centers

Author

Listed:
  • Niu Gao
  • Lin‐Chi Qu
  • Yuan‐Tao Jiang

Abstract

Due to environmental and economic incentives, reverse supply chains have developed. In a reverse supply chain, due to the uncertainty of recycling, the probability of out‐of‐stock is high for recycled parts. In inventory management, transshipment and substitution are often used to avoid various consequences caused by stock shortages. This paper deals with a single‐echelon inventory system with two recycling centers and one supplier. Given demand characteristics, replenishment methods, and sharing rules, four inventory models: general strategy, lateral transshipment between the two recycling centers, substitution between recycling centers, and the supplier and the multi‐strategy are constructed. In the numerical example, Mathematica 11.3 is used to solve the models. Results show that lateral transshipment does not necessarily reduce the cost of recycling centers, while the substitution strategy and the multistrategy are better than the other two, among which the multistrategy is usually better than the substitution, unless the recycling center faces low replenishment rates with high demand rates. These conclusions can provide some management implications for recycling companies.

Suggested Citation

  • Niu Gao & Lin‐Chi Qu & Yuan‐Tao Jiang, 2024. "Inventory cooperation strategies between one supplier and two recycling centers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 130-147, January.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:1:p:130-147
    DOI: 10.1002/mde.3990
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3990
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3990?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Genc, Talat S. & Giovanni, Pietro De, 2017. "Trade-in and save: A two-period closed-loop supply chain game with price and technology dependent returns," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 514-527.
    2. Le Blanc, H.M. & van Krieken, M.G.C. & Fleuren, H.A. & Krikke, H.R., 2004. "Collector Managed Inventory, A Proactive Planning Approach to the Collection of Liquids coming from End-of-life Vehicles," Other publications TiSEM 9183b48c-c7f1-48af-b3d2-3, Tilburg University, School of Economics and Management.
    3. Fatima Ezzahra Achamrah & Fouad Riane & Sabine Limbourg, 2022. "Solving inventory routing with transshipment and substitution under dynamic and stochastic demands using genetic algorithm and deep reinforcement learning," International Journal of Production Research, Taylor & Francis Journals, vol. 60(20), pages 6187-6204, October.
    4. Hallak, Bassam K. & Nasr, Walid W. & Jaber, Mohamad Y., 2021. "Re-ordering policies for inventory systems with recyclable items and stochastic demand – Outsourcing vs. in-house recycling," Omega, Elsevier, vol. 105(C).
    5. Derhami, Shahab & Montreuil, Benoit & Bau, Guilhem, 2021. "Assessing product availability in omnichannel retail networks in the presence of on-demand inventory transshipment and product substitution," Omega, Elsevier, vol. 102(C).
    6. Yi Liao & Jun Li & Xinxin Hu & Ying Li & Wenjing Shen, 2020. "Application of Lateral Transshipment in Cost Reduction of Decentralized Systems," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    7. Shin, Hojung & Park, Soohoon & Lee, Euncheol & Benton, W.C., 2015. "A classification of the literature on the planning of substitutable products," European Journal of Operational Research, Elsevier, vol. 246(3), pages 686-699.
    8. Olsson, Fredrik, 2009. "Optimal policies for inventory systems with lateral transshipments," International Journal of Production Economics, Elsevier, vol. 118(1), pages 175-184, March.
    9. Teunter, Ruud H. & Kuipers, Stefan, 2022. "Inventory control with demand substitution: new insights from a two-product Economic Order Quantity analysis," Omega, Elsevier, vol. 113(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-transshipment control policy for a two-location unreliable manufacturing system," International Journal of Production Economics, Elsevier, vol. 247(C).
    2. Zhou, Zihan & Wang, Xinhui, 2023. "Replenishment and transshipment in periodic-review systems with a fixed order cost," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1240-1247.
    3. Chelsea Greene & Zelda B. Zabinsky & David Sarley & Laila Akhlaghi, 2024. "Inventory and order management for healthcare commodities during a pandemic," Annals of Operations Research, Springer, vol. 337(1), pages 105-133, June.
    4. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    5. Jalali, Hamed & Carmen, Raïsa & Van Nieuwenhuyse, Inneke & Boute, Robert, 2019. "Quality and pricing decisions in production/inventory systems," European Journal of Operational Research, Elsevier, vol. 272(1), pages 195-206.
    6. P. Majumder & U. K. Bera & M. Maiti, 2020. "An EPQ model of substitutable products under trade credit policy with stock dependent and random substitution," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1205-1243, December.
    7. Abdelaziz, Fouad Ben & Maddah, Bacel & Flamand, Tülay & Azar, Jimmy, 2024. "Store-Wide space planning balancing impulse and convenience," European Journal of Operational Research, Elsevier, vol. 312(1), pages 211-226.
    8. Olli-Pekka Hilmola & Oskari Lähdeaho & Ville Henttu & Per Hilletofth, 2020. "Covid-19 Pandemic: Early Implications for North European Manufacturing and Logistics," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    9. Adam Diamant & Joseph Milner & Fayez Quereshy & Bo Xu, 2018. "Inventory management of reusable surgical supplies," Health Care Management Science, Springer, vol. 21(3), pages 439-459, September.
    10. He, Peng & He, Yong & Zhou, Li, 2023. "Channel strategies for dual-channel firms to counter strategic consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    11. Transchel, Sandra, 2017. "Inventory management under price-based and stockout-based substitution," European Journal of Operational Research, Elsevier, vol. 262(3), pages 996-1008.
    12. Qiao, Haike & Su, Qin, 2021. "Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    13. Bryndís Stefánsdóttir & Martin Grunow & Selwyn Piramuthu, 2023. "Dynamics of sensor-based information in supply chains with perishables substitutable by non-perishables," Annals of Operations Research, Springer, vol. 329(1), pages 1357-1380, October.
    14. Tiacci, Lorenzo & Saetta, Stefano, 2011. "Reducing the mean supply delay of spare parts using lateral transshipments policies," International Journal of Production Economics, Elsevier, vol. 133(1), pages 182-191, September.
    15. Hsien-Wei Chen & Alvin Lim, 2023. "A network price elasticity of demand model with product substitution," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 235-247, August.
    16. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    17. Palanivel Muthusamy & Venkadesh Murugesan & Vetriselvi Selvaraj, 2024. "Optimal production–inventory decision with shortage for deterioration item and effect of carbon emission policy combination with green technology," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23701-23766, September.
    18. Van der Heide, G. & Roodbergen, K.J., 2013. "Transshipment and rebalancing policies for library books," European Journal of Operational Research, Elsevier, vol. 228(2), pages 447-456.
    19. Lin, Junyi & Naim, Mohamed M. & Tang, Ou, 2024. "In-house or outsourcing? The impact of remanufacturing strategies on the dynamics of component remanufacturing systems under lifecycle demand and returns," European Journal of Operational Research, Elsevier, vol. 315(3), pages 965-979.
    20. Quan, Yuting & Hong, Jiangtao & Song, Jingpu & Leng, Mingming, 2021. "Game-theoretic analysis of trade-in services in closed-loop supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:45:y:2024:i:1:p:130-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.