Matching Demand and Supply to Maximize Profits from Remanufacturing

Guide, V. Daniel R.; Teunter, Ruud H.; Wassenhove, Luk N. Van

doi:10.1287/msom.5.4.303.24883

Cited by 467 publications

(286 citation statements)

References 17 publications

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“…Zikopoulos and Tagaras (2007) investigated how the profitability of reuse activities was affected by uncertainty regarding the quality of returned products in two collection sites and determined the unique optimal solution (procurement and production quantities). Guide et al (2003) and Ferguson et al (2009) assumed that returned products were classified into discrete quality category from 1 to integer n, and the procurement prices and the remanufacturing costs were different based on the corresponding quality level. Mukhopadhyay and Ma (2009) discussed a GSC consisting of a retailer who sold a single product and a manufacturer who collected used products from the market, remanufactured parts from the used products and then produced products.…”

Section: Literature Reviewmentioning

confidence: 99%

Mean-Variance Analysis for Optimal Operation and Supply Chain Coordination in a Green Supply Chain

Yamaguchi¹,

Goto²,

Kusukawa³

2017

Industrial Engineering and Management Systems

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It is urgently-needed to construct a green supply chain (GSC) from collection of used products through recycling of them to sales of products using the recycled parts. Besides, it is necessary to consider the uncertainty in product demand as a risk in a GSC. This study proposes the optimal operations for a GSC with a retailer and a manufacturer. A retailer pays an incentive for collection of used products from customers and sells a single type of products in a market. A manufacturer produces the products ordered by the retailer, using recyclable parts with acceptable quality and compensates the collection cost of used products as to the recycled parts. This paper discusses the following risk attitudes: risk-neutral attitude, risk-averse attitude, and risk-prone attitude. Using mean-variance analysis, the optimal decisions for product order quantity, collection incentive, and lower limit of quality level, in the decentralized GSC (DGSC) and the integrated GSC (IGSC) are made. DGSC optimizes the utility function of each member. IGSC does that of the whole system. The analysis numerically investigates how (i) risk attitude and (ii) quality of recyclable parts affect the optimal operations. Supply chain coordination between GSC members to shift IGSC from DGSC is discussed.

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Section: Literature Reviewmentioning

confidence: 99%

Mean-Variance Analysis for Optimal Operation and Supply Chain Coordination in a Green Supply Chain

Yamaguchi¹,

Goto²,

Kusukawa³

2017

Industrial Engineering and Management Systems

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“…The reverse chains/logistics are composed of the flows from collection of used products through recycling parts from the used products to reuse the recycled parts (Aras et al, 2004;Behret and Korugan, 2009;Ferguson et al, 2009;Fleischman et al, 1997;Guide and Wassenhove, 2001;Inderfurth, 2005;Konstantaras et al, 2010;Mukhopadhyay and Ma, 2009;Nenes et al, 2010;Pokharel and Liang, 2012;Teunter and Flapper, 2011;Wei et al, 2011;Wu, 2012, Watanabe et al, 2013, Watanabe and Kusukawa, 2014. Also, a supply chain which organizes the forward chains and the reverse chains has been called as a closed-supply chain, a reverse supply chain or a green supply chain (Bakal and Akcali, 2006;Barari et al, 2012, Fleischman et al, 1997Guide et al, 2003;Inderfurth, 2005;Kaya, 2010;Lee et al, 2011;Shi et al, 2010Shi et al, , 2011Tagaras and Zikopoulos, 2008;Thierry et al, 1995;Van Wassenhove and Zikopoulos, 2010;Watanabe et al, 2013, Watanabe and Kusukawa, 2014, Wei et al, 2012Yan and Sun, 2012;Tagaras, 2007, 2008). In this paper, a supply chain which has the forward chains and the reverse chains is called as a reverse supply chain (RSC).…”

Section: Introductionmentioning

confidence: 99%

“…The incorporation of the price-sensitivity in collection quantity of used products and demands of products/parts into the optimal tactical production planning RSC has been discussed by Bakal and Akcali (2006), Pokharel and Liang (2012), Shi et al (2010), Teunter and Flapper (2011), Wei et al (2012), and Yan and Sun (2012). Also, the impacts of inspection and sorting of used products on the optimal production planning in a RSC have been discussed by Aras et al (2004), Behret and Korugan (2009), Ferguson et al (2009), Guide et al (2003), Konstantaras et al (2010), Nenes et al (2010), Tagaras and Zikopoulos (2008), Van Wassenhove and Zikopoulos (2010), and Tagaras (2007, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…Zikopoulos and Tagaras (2007) verified how the profitability of reuse activity was affected by uncertainty regarding the quality of returned products in two collection sites and found the unique optimal solution (quantities of procurement and production). In Guide et al (2003) and Ferguson et al (2009), returned products were assumed to have N quality categories, and the procurement prices and the remanufacturing costs were different based on the corresponding quality level. Behret and Korugan (2009) discussed a remanufacturing stage with uncertainties in qualities of remanufacturing products, return rates, and return times of returned products.…”

Section: Introductionmentioning

confidence: 99%

“…This paper focuses on the optimal operation for a RSC to encourage to collect and recycle a single type of used products, such as consumer electronics (mobile phone, personal computer), semiconductor and electronic component Guide and Jayaraman, 2000; Analyzing the Evolutionary Stability for Behavior Strategies in Reverse Supply Chain Vol 14, No 1, March 2015, pp.44-57, © 2015KIIE 47 Guide and Van Wassenhove, 2001Guide et al, 2003;Ferguson et al, 2009) under the uncertainties in product demand and quality of used products collected from customers. Concretely, this paper discusses a reverse supply chain (RSC) consisting of a retailer and a manufacturer as RSC members.…”

Section: Introductionmentioning

confidence: 99%

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Analyzing the Evolutionary Stability for Behavior Strategies in Reverse Supply Chain

Tomita¹,

Kusukawa²

2015

Industrial Engineering and Management Systems

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In recent years, for the purpose of solving the problem regarding environment protection and resource saving, certain measures and policies have been promoted to establish a reverse supply chains (RSCs) with material flows from collection of used products to reuse the recycled parts in production of products. It is necessary to analyze behaviors of RSC members to determine the optimal operation. This paper discusses a RSC with a retailer and a manufacturer and verifies the behavior strategies of RSC members which may change over time in response to changes parameters related to the recycling promotion activity in RSC. A retailer takes two behaviors: cooperation/non-cooperation in recycling promotion activity. A manufacturer takes two behaviors: monitoring/non-monitoring of behaviors of the retailer. Evolutionary game theory combining the evolutionary theory of Darwin with game theory is adopted to clarify analytically evolutionary outcomes driven by a change in each behavior of RSC members over time. The evolutionary stable strategies (ESSs) for RSC members' behaviors are derived by using the replicator dynamics. The analysis numerically demonstrates how parameters of the recycling promotion activity: (i) sale promotion cost, (ii) monitoring cost, (iii) compensation and (iv) penalty cost affect the judgment of ESSs of behaviors of RSC members.

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Recycling

Akçalı¹

2011

Wiley Encyclopedia of Operations Research and Management Science

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With changes in consumption patterns, complex industrial products (e.g., automobiles, cellular phones, and computers) are beginning to account for an increased fraction of the solid waste generated. Hence, the scope of the recycling industry, which was limited to simple products that are made of steel, glass, and some types of plastics in the past, has been expanding to include the recycling of such complex industrial products. With the expanding scope and size of the recycling industry, operations research (OR) tools and techniques are increasingly being utilized for the optimization of recycling operations and the underlying reverse supply chain (RSC) systems. This article begins by highlighting some of the practical issues encountered in recycling practice that create unique modeling challenges for the design and operation of underlying RSC systems. Then, a brief review of the related OR literature on important planning and control problems that are encountered in the context of RSC systems is presented. By focusing on a pricing problem that arises in the context of end‐of‐life vehicle recycling, the article demonstrates how OR models can be used to assess the economic and environmental efficiency of RSC systems for recycling and to provide support for decision making.

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Matching Demand and Supply to Maximize Profits from Remanufacturing

Cited by 467 publications

References 17 publications

Mean-Variance Analysis for Optimal Operation and Supply Chain Coordination in a Green Supply Chain

Mean-Variance Analysis for Optimal Operation and Supply Chain Coordination in a Green Supply Chain

Analyzing the Evolutionary Stability for Behavior Strategies in Reverse Supply Chain

Recycling

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