Optimization of Inventory for Two Level Multiple Retailers-Single Manufacturer Reverse Supply Chain

Abstract

This paper deals with modelling of deteriorating used products inventory in a two level reverse supply chain. A time dependent optimisation model is developed for multi-retailer single manufacturer reverse supply chain involving collection and disposal of used products from customers. Collection rate or supply is assumed to exponential with time and time dependent deterioration of items is considered. Two cases are presented with one on decentralised policy optimizing retailers and manufacturer's cost separately and another on centralised policy optimizing system wide cost. The optimal collection and disposal cycle times are derived and discussed with numerical example. The model has potential to be used in industries where existing distribution system is used for end-of life products collection and disposal.

Optimizing the Total Cost of an E-waste Reverse Supply Chain Considering Transportation Risk

“…One of the effective ways to mitigate the environmental effect of e-waste is to implement reverse supply chain (RSC) to gain recycled materials or reusable parts from such waste streams (Rahman and Subramanian, 2012). The scarcity of raw materials, sustainable development, and environmental regulations create RSC operation which makes the recovery of returned products and materials more attractive (Rahman and Subramanian, 2012, Dowlatshahi, 2000, Nagalingam et al, 2013, Chandiran, 2014 The RSC operation may require a large initial investment for establishing collection areas, remanufacturing, and recycling facilities (Govindan and Soleimani, 2017). Hence, studies on total cost minimization Doan et al: Optimizing the Total Cost of an E-waste Reverse Supply Chain Considering Transportation Risk 152…”

Teaching the Mechanism of Horizontal and Vertical Supply Chain Coordination

“…Without loss of generality, we assume customers pay the return delivery fee s to the retailers, and retailers pay the return delivery fee r to suppliers. This shows the reverse logistics process in the reverse supply chain (Chandiran, 2014). Retailer needs to make the decision of the retail price p of the product.…”