Economic Lot Scheduling Problem with Returns

Tang, Ou; Teunter, Ruud H.

doi:10.1111/j.1937-5956.2006.tb00158.x

Cited by 108 publications

(62 citation statements)

References 20 publications

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“…Note also that with M R P P = , the expression of the time-average costs ( , ) s H q β of holding the serviceable inventory at the vendor coincides with the respective cost expression in Banerjee's (1986a) joint economic lot size model. We refer the reader to Tang and Teunter (2006) for a case study with M R P P ≈ .…”

Section: Figmentioning

confidence: 99%

“…Thirdly, we assume a joint setup cost for manufacturing and remanufacturing operations within a cycle at the vendor -something that does not, however, represent a general case (cf. Teunter et al 2006). Fourthly, following the lot-for-lot assumption, we restrict the production policy at the vendor to having at most one manufacturing and one remanufacturing batch within a cycle at the vendor; however, the question regarding the form of the optimal policy in more general settings remains (cf.…”

Section: Contracting On the Deposit Amount And A Three-part Tariffmentioning

confidence: 99%

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A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

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In this paper, we study a closed-loop supply chain in which a single purchaser orders a particular product from a single vendor and sells it on the market. A certain fraction of used items return from the market back to the purchaser, who is responsible for collecting and returning them to the vendor. In addition to manufacturing new items, the vendor is able to remanufacture the returns into as-good-as-new items which are subsequently used to serve market demand. Our framework features the conventional joint economic lot size (JELS) model extended to include the return flow of the used items. In line with the assumptions of the JELS model, we assume a deterministic constant demand for the product. The fraction of used items returning from the market is assumed to depend on the purchaser's collection effort. To stimulate the returns, the vendor may offer the purchaser a transfer payment per item returned. The questions addressed by this study pertain to the optimal centralised control of this closed-loop supply chain, to the individually optimal policies of its members, and to the coordination within this supply chain under a decentralised control. In particular, we show that the transfer payment alone cannot coordinate the supply chain under consideration and may even fail to do so when combined with a two-part tariff -which is otherwise known to coordinate the corresponding forward supply chain. Our numerical study, though, has revealed that the combined contract is capable of substantially reducing the coordination deficit. We also introduce a novel three-part tariff which is shown to enable supply chain coordination in combination with the transfer payment.

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Section: Figmentioning

confidence: 99%

Section: Contracting On the Deposit Amount And A Three-part Tariffmentioning

confidence: 99%

A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

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“…This recoverable stock increases till remanufacturing lot starts. This Economic Lot Scheduling Problem with Returns (ELSPR) was first introduced by Tang and Teunter (2006). They studied a specific case of a company which was involved in car parts manufacturing for service markets.…”

Section: Introductionmentioning

confidence: 99%

“…The relevance of scheduling for the ELSPR makes it a more complex problem than the ELSP. Tang and Teunter (2006) firstly developed an algorithm for the ELSPR with the formulation of a mixed integer linear program (MIP). Their study is based on common cycle policy and the solution method combines the search for the optimal value of the cycle time and schedules for all items.…”

Section: Introductionmentioning

confidence: 99%

“…Our aim is to introduce a simple scheduling policy which can be solved with near-optimal solutions, and which has a great potential to improve the cost performance in the system. More specifically, by introducing approximations in the cost function, we develop a heuristic to reduce the computational complexity, compared with exact solution method in the common cycle approach in Tang and Teunter (2006). The cost saving is then investigated in the numerical examples.…”

Section: Introductionmentioning

confidence: 99%

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