Inventory Control for Stochastic Reverse Logistics with Product's Life Cycle

This paper investigates inventory control policies in a manufacturing/remanufacturing system during the product life-cycle, which consists of four phases: introduction, growth, maturity, and decline stages. Both demand rate and return rate of products are random variables with normal distribution, and the mean of the distribution also varies according to the time in the product life-cycle. Closed-form formulas of optimal production lot size, reorder point, and safety stock in each phase of product life-cycle are derived. A numerical example is presented. The result shows that different inventory control policies should be adopted in different phases of product life-cycle.

[1]  Samar K. Mukhopadhyay,et al.  Joint procurement and production decisions in remanufacturing under quality and demand uncertainty , 2009 .

[2]  Gp Gudrun Kiesmüller,et al.  An inventory model with dependent product demands and returns , 2001 .

[3]  Aspects of sustainable design and manufacture , 2007 .

[4]  Gp Gudrun Kiesmüller.  Optimal control of a one product recovery system with leadtimes , 2003 .

[5]  Joseph Sarkis,et al.  Sustainability and supply chain management – An introduction to the special issue , 2008 .

[6]  Johan Östlin,et al.  Product life-cycle implications for remanufacturing strategies , 2009 .

[7]  Rommert Dekker,et al.  An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies , 1999, Eur. J. Oper. Res..

[8]  Rajesh Piplani,et al.  Sustainable supply chain management , 2008 .

[9]  Samir K. Srivastava,et al.  Green Supply-Chain Management: A State-of-the-Art Literature Review , 2007 .

[10]  E. A. van deLaan,et al.  Production planning and inventory control with remanufacturing and disposal , 1997 .

[11]  Erwin van der Laan,et al.  Product remanufacturing and disposal: A numerical comparison of alternative control strategies , 1996 .

[12]  Anju Vyas.  Print , 2003 .

[13]  Rommert Dekker,et al.  Inventory Control in Hybrid Systems with Remanufacturing , 1999 .

[14]  Johan Östlin,et al.  Importance of closed-loop supply chain relationships for product remanufacturing , 2008 .

[15]  Imre Dobos,et al.  Optimal production-inventory strategies for a HMMS-type reverse logistics system , 2003 .

[16]  Stefan Seuring,et al.  From a literature review to a conceptual framework for sustainable supply chain management , 2008 .

[17]  Vaidyanathan Jayaraman,et al.  Supply chain management in a sustainable environment , 2007 .