A profit maximization for a reverse logistics dual-channel supply chain with a return policy

Batarfi, Raaid; Aljazzar, Salem M.

doi:10.1016/j.cie.2017.01.024

Cited by 104 publications

(53 citation statements)

References 38 publications

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“…Concentrating our study on one type of device (hearing aids) for RE provides insights into real facilitators and barriers to implementation. Given the already discussed limitations of RE literature (Beamon and Fernandes, 2004;Junior and Filho, 2012;Junior and Filho, 2016), this is further compounded by a private sector and RL focus specifically, and the use of mathematical modelling (Turrisi, Bruccoleri and Cannella, 2013;Batarfi, Jaber and Aljazzar, 2017).…”

Section: Methodsmentioning

confidence: 99%

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Reverse exchange of healthcare devices: the case of hearing aid equipment in the UK

Cole

Lindsay

Barker

2018

Production Planning & Control

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Reverse exchange (RE) in dealing with the return, recycle and reuse of products is receiving a growing focus. When properly handled, RE in healthcare can deliver an economic benefit of cost minimisation and has extensive positive impacts on both human health and the environment (Li and Olorunniwo, 2008) but to date, RE research is mostly limited to pharmaceutical return. This paper investigates the potential for RE benefits in the UK National Health Service (NHS) supply chain for medical devices. Hearing aids supplied to adults with hearing loss are used as an illustrative example. This research applied a consensus approach through the use of dispersed nominal groups in order to obtain qualitative data on information, barriers, solutions and priorities to support findings. Findings illustrate that the end user behaviour of returning the device, and the requirement by NHS Procurement for manufacturers to meet RE targets are secondary to the importance of audiology departments who have the autonomy to design RE processes and successfully implement initiatives. A schematic highlighting the information and materials flow of the supply chain and the barriers and facilitators to RE is presented for hearing aid devices with potential for transferability to other small medical device supply chains.

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Section: Methodsmentioning

confidence: 99%

“…they need to get used items back such as in the case of telecommunications equipment ) could be useful to emulate for the NHS. Secondly, where complex supply chains are being investigated for items that have been customised online and then returned (Batarfi, Jaber and Aljazzar, 2017).…”

Section: Reverse Exchangementioning

confidence: 99%

Reverse exchange of healthcare devices: the case of hearing aid equipment in the UK

Cole

Lindsay

Barker

2018

Production Planning & Control

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“…For example, Mukhopadhyay and Setaputra (2004) model returns as R = ϕ + ψr, where ϕ is a base return amount and ψ denotes customer sensitivity to monetary leniency. Several works, such as Li et al (2017), Heydari et al (2017), and Batarfi et al (2017), express returns volume only as a deterministic fraction of demand without a returnspecific sensitivity parameter, and we therefore classify them as not having a return sensitivity. In general, demand and return sensitivity across papers use consistent assumptions regarding the relationship between demand and return volumes and retailer decisions.…”

Section: Demand and Return Sensitivitymentioning

confidence: 99%

Taking stock of consumer returns: A review and classification of the literature

Abdulla

Ketzenberg

Abbey

2019

J of Ops Management

102

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Coincident with the rapid growth of consumer returns and their corresponding importance in the retail marketplace, academic interest in the area of consumer return policy design has significantly increased. In fact, the growth in academic publications has been tremendous, with almost half of the published works appearing within the past 6 years. The influx of new and evolving research spans across multiple disciplines and various methodologies. To provide clarity for the continued evolution of the field, we provide a comprehensive review and classification of the literature predicated on a holistic conceptual framework. The scope of the review includes all peer reviewed journal articles published prior to the end of 2018, along with any working papers cited therefrom, that specifically address (a) managerial decision‐making related to return policies or (b) consumer behavior in response to such decision‐making. Examining the state of the literature and practice on return policy design through the lens of a unified conceptual framework—a framework that spans both analytical and empirical research—reveals numerous managerial and theoretical opportunities for future research.

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“…When combining two or three of them, many other contracts come into being. The studies about contracts are numerous (Zhang et al., ; Batarfi et al., ; Yang and Chen, ); thus, we mainly focus on the studies of the wholesale price contract, revenue‐sharing contract, and mechanism‐designed methods used in this paper. Lariviere and Porteus () consider the wholesale price contract in newsvendor model.…”

Section: Literature Reviewmentioning

confidence: 99%

System dynamics simulation‐based model for coordination of a three‐level spare parts supply chain

Zhao

Chang

et al. 2019

Int Trans Operational Res

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In some spare parts distribution systems for consumption goods, a portion of consumers’ demand is met by inventories in maintenance outlets, while the remaining portion is satisfied with emergency orders from the supplier, which can enhance customers’ satisfaction but cause added order‐processing costs and transportation costs. Faced with the trade‐off between the supplier's and outlet's profits, it is highly crucial to design and coordinate a supply chain in a way that determines to what extent each level should hold inventories by considering classification of spare parts. Therefore, in this paper, a system dynamics approach is used to design a three‐level supply chain simulation model consisting of one business unit, one distribution center, and one maintenance outlet. The business unit and distribution center belong to one company, so we consider them as one supplier. Therefore, we focus on the coordination between the distribution center and the maintenance outlet. The objective is to propose a contract to enhance these two parties’ profits. Through numerical analysis, we provide a contract with which the spare parts in class A are differentiated in their normal and emergency procurement prices and the spare parts in class B and class C have a prescribed customer service level. Using this type of contract, both distribution center's and maintenance outlet's profits can be enhanced, and the management process can be simplified.

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A profit maximization for a reverse logistics dual-channel supply chain with a return policy

Cited by 104 publications

References 38 publications

Reverse exchange of healthcare devices: the case of hearing aid equipment in the UK

Reverse exchange of healthcare devices: the case of hearing aid equipment in the UK

Taking stock of consumer returns: A review and classification of the literature

System dynamics simulation‐based model for coordination of a three‐level spare parts supply chain

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