Production and Remanufacturing Strategies in a Closed-Loop Supply Chain: A Two-Period Newsvendor Problem

Reimann, Marc; Lechner, Gernot

doi:10.1007/978-1-4614-3600-3_9

Cited by 5 publications

(1 citation statement)

References 24 publications

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“…One stream of literature primarily deals with disposition decisions. All discussed papers (Toktay, Wein, and Zenios 2000;Inderfurth, de Kok, and Flapper 2001;Inderfurth 2004;Bhattacharya, Guide, and Van Wassenhove 2006;Ferguson, Fleischmann, and Souza 2011;Reimann and Lechner 2012;Flapper, Gayon, and Vercraene 2012;Benedito and Corominas 2013;Giri and Glock 2017) assume a CLSC environment except for the RL approaches in Inderfurth (2004) and Polotski, Kenné, and Gharbi (2019). In none of the models, an active acquisition process is integrated; therefore, the amount of returned items cannot be controlled by acquisition cost, effort, or incentives.…”

Section: Related Literaturementioning

confidence: 99%

Integrated decision-making in reverse logistics: an optimisation of interacting acquisition, grading and disposition processes

Lechner

Reimann

2019

International Journal of Production Research

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In view of global environmental and social challenges the transition towards a Circular Economy is considered as a crucial factor for sustainable development. Therefore, the replacement of traditional linear business models involving product discard at the end of product life with concepts focusing on re-use of resources is essential. Reverse Logistics and Closed-loop Supply Chains are seen to be key elements of such a transition. Motivated by findings from a case study of an independent reprocessing company, we address integrated decision-making in Reverse Logistics in this paper. We present a non-linear optimisation model with interrelated processes in terms of acquisition of used products, grading for determination of product quality and reprocessing disposition. The decisions to be made concern the effort spent for active acquisition of used products and the number of reprocessed goods; both decisions are influenced by heterogeneous condition of used products. The consideration of deterministic and stochastic demand facilitates the representation of a variety of business cases. For both demand types we provide analytical insights in the form of complete strategies consisting of different scenarios which allow optimal decision-making under variable conditions. Numerical examples complement insights into the model by conducting a sensitivity analysis of relevant model parameters.

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Section: Related Literaturementioning

confidence: 99%

Integrated decision-making in reverse logistics: an optimisation of interacting acquisition, grading and disposition processes

Lechner

Reimann

2019

International Journal of Production Research

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The Effect of Remanufacturability of End-of-Use Returns on the Optimal Intertemporal Production Decisions of a Newsvendor

Reimann

2016

Dynamic Modeling and Econometrics in Economics and Finance

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A study of manufacturing and inventory strategies in close-loop supply chain: a two-phase news-vendor model with an extended warranty

Jalapathy,

Unnissa

2023

Jnl Remanufactur

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Closed-loop supply chain procedures provide manufacturers with a competitive advantage over their competitors. Also, the supply chain involves a manufacturer and customers, in which the manufacturer produces and sells products from the manufacturing market. Interestingly, combining forward and reversal strategies presents challenges on both the on-demand and supply sides of the market. When customers purchase products, they are uncertain about the quality of the product, and the manufacturer offers a warranty to assure the customers about the reliability and quality of the products. This paper presents a two-phase News-vendor framework for warranted and non-warranted products with inventory carryover to describe the best manufacturing and re(manufacturing) procedures. The demand is modeled in stochastic nature with one dimensional extended warranty for both new and reman products. Two scenarios are considered to demonstrate the importance of providing an extended warranty. Finally, the numerical analysis concludes that the expected profit affects the manufacturer's influence when providing a warranty and graphical results reveal that offering an extended warranty and lowering holding expenditure enhances the manufacturer's expected total profit over two phases.

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Production and Remanufacturing Strategies in a Closed-Loop Supply Chain: A Two-Period Newsvendor Problem

Cited by 5 publications

References 24 publications

Integrated decision-making in reverse logistics: an optimisation of interacting acquisition, grading and disposition processes

Integrated decision-making in reverse logistics: an optimisation of interacting acquisition, grading and disposition processes

The Effect of Remanufacturability of End-of-Use Returns on the Optimal Intertemporal Production Decisions of a Newsvendor

A study of manufacturing and inventory strategies in close-loop supply chain: a two-phase news-vendor model with an extended warranty

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