An inventory model with returns and lateral transshipments

Ching, Wai‐Ki; Yuen, Wai-On; Loh, Anthony Wai-keung

doi:10.1057/palgrave.jors.2601521

Cited by 29 publications

(11 citation statements)

References 8 publications

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“…Using this model, they try to investigate the conditions on different system parameters (lifetime of the product, supplier lead time, lead time and value added of manufacturing and remanufacturing operations, capacity of the production facilities) that make remanufacturing alternative attractive considering the total cost. Ching et al (2003) develop a closed form solution for the system steady-state probability distribution for an inventory model with returns and lateral transshipments between inventory systems. Nakashima et al (2002Nakashima et al ( , 2004 develop Markov chain models to analyze the behavior of stochastic remanufacturing systems.…”

Section: Inventory Modelsmentioning

confidence: 99%

Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art

Ilgın

Gupta

2010

Journal of Environmental Management

807

377

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Section: Inventory Modelsmentioning

confidence: 99%

Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art

Ilgın

Gupta

2010

Journal of Environmental Management

807

377

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“…Fu [22] conducted a comprehensive survey on queueing models for manufacturing applications. Markovian queueing models lead to a useful tool for modeling manufacturing systems in general [10] and flexible manufacturing systems in particular [12].…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling the merging capacity for two streams of product returns in remanufacturing systems

Fathi

Zandi

Jouini

2015

Journal of Manufacturing Systems

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International audienceWe consider a remanufacturing system with two streams of returned products and different variability levels (high and low). The arrival of returns with high variability is modeled with a hyperexponential renewal process and that of returns with low variability is modeled with a Poisson process. The reman-ufacturing facility can process the returned products in two ways. For the first way, each type of returns is remanufactured by a dedicated capacity. For the second way, returns from two different markets are remanufactured by a merged capacity. Analytical queueing models with the time value of money consideration are proposed for the admission decision, which decides on the acceptance or not of returned products based on quality and processing time. The proposed modeling determines the admission decision threshold value in order to maximize the total expected profit of the remanufacturing system. Our analysis also allows to study the interaction between the overall utilization and the arrival process variability. The results show the impact of the model parameters on the admission decision value and the total expected discounted profit. Also, the total expected discounted profit under the separated and merged capacities are compared

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“…Needham and Evers (1998) provide a mathematical tool as an aid to make transship or donot-transship decisions. Similarly, Evers (2001), Axsäter (2003b), Axsäter (2003a), Minner et al (2003), Xu et al (2003), Minner and Silver (2005), Ching et al (2003) and Olsson (2009) study (r, Q) policies with an objective of providing rules for transshipment decisions.…”

Section: Transshipmentsmentioning

confidence: 99%

Transshipment policies for systems with multiple retailers and two demand classes

2017

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Many retailers discriminate among their customers based on their value to the firm. Instead of losing a customer due to this discrimination or lack of inventory, a retailer might prefer to place a transshipment request with other retailers to satisfy the customer's demand. The system as a whole can benefit from this type of transshipments. In this paper, we study a problem of a centrally controlled system with multiple retailers. Each retailer serves two types of customers: high priority and low priority. Each retailer employs a rationing policy with a rationing level k in the context of a continuous-review (r, Q) inventory replenishment model. The overall policy is referred to as an (r, k, Q) policy. Retailers can transship items from either other retailers or a more expensive central depot. We propose an enumeration-based approximation to find the cost-minimizing policy parameters for the individual retailers and an approximation procedure to solve the combined rationing and transshipment problem. The latter relies on adjusting the demand arrival rates and the unit transshipment costs for both types of customers at all retailers. An extensive numerical study highlights the impact of transshipments on the retailers' rationing policies. Without transshipment opportunities among each other, retailers set their policy parameters so that the resulting service levels are high for both types of customers. Allowing transshipments results in more aggressive rationing policies, and retailers with aggressive rationing policies benefit from the transshipments the most.

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An inventory model with returns and lateral transshipments

Cited by 29 publications

References 8 publications

Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art

Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art

Modeling the merging capacity for two streams of product returns in remanufacturing systems

Transshipment policies for systems with multiple retailers and two demand classes

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