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Remanufacturing of used products in a closed-loop supply chain with quantity discount

In: Operations Research Proceedings 2011

Author

Listed:
  • Grigory Pishchulov

    (European University Viadrina)

  • Imre Dobos

    (Corvinus University of Budapest)

  • Barbara Gobsch

    (European University Viadrina)

  • Nadezhda Pakhomova

    (St. Petersburg State University)

  • Knut Richter

    (European University Viadrina
    St. Petersburg State University)

Abstract

An extended joint economic lot size problem is studied which incorporates the return flow of repairable (remanufacturable) used products. The supply chain under consideration consists of a single supplier and a single buyer. The buyer orders a single product from the supplier, uses it for her own needs, and collects a certain fraction of used items for the subsequent remanufacturing. The product is shipped to the buyer in the lot-for-lot fashion by a vehicle which also returns the collected used items to the supplier for remanufacturing and subsequent service of the buyer’s demand in the next order cycle. To satisfy the buyer’s demand, the supplier can remanufacture used items as well as manufacture new ones. For the given demand, productivity, disposal, setup, ordering and holding costs for serviceable and nonserviceable items at the supplier and the buyer, the optimal lot sizes and collection rates are determined which minimize the joint as well as individual total costs. Further, a problem of coordinating this supply chain by a type of quantity discount is addressed.

Suggested Citation

  • Grigory Pishchulov & Imre Dobos & Barbara Gobsch & Nadezhda Pakhomova & Knut Richter, 2012. "Remanufacturing of used products in a closed-loop supply chain with quantity discount," Operations Research Proceedings, in: Diethard Klatte & Hans-Jakob Lüthi & Karl Schmedders (ed.), Operations Research Proceedings 2011, edition 127, pages 457-462, Springer.
    • Handle: RePEc:spr:oprchp:978-3-642-29210-1_73
    DOI: 10.1007/978-3-642-29210-1_73
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    Cited by:

    1. Imre Dobos & Barbara Gobsch & Nadezhda Pakhomova & Grigory Pishchulov & Knut Richter, 2013. "Design of contract parameters in a closed-loop supply chain," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(4), pages 713-727, December.

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