Examples Of Reverse Logistics

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Abstract. Reverse logistics systems have become increasingly popular over the last decade in the business and academic community. Firms incorporate reverse flow to their systems for such reasons as ecological and economic factors, government regulations and social responsibilities. Reverse logistics manage the flow of returned used products for remanufacturing or repairing or other purposes. We developed a centralized open loop supply chain inventory model with the joint determination of reproduction and procurement through the time dependent rates under the situation in which the supplier provides the purchaser with a permissible delay of payments. As a result, in this article, we establish a mathematical model to determine the optimal payment…show more content…
Nahmias and Rivera [13] considered the model of Schrady [15] for the case of finite repair rate and limited storage in the repair and production shops. Koh et al. [10] generalized the model of Nahmias and Rivera [13] by assuming a limited repair capacity. Dobos and Richter [5] explore a reverse logistics inventory system with non instantaneous production and remanufacturing rate. Dobos and Richter [6] generalized their earlier work [5] to the case of multiple remanufacturing and production cycle. Dobos and Richter [7] explored their previous model by assuming that the quality of collected used items is not always suitable for further recycling. Dekker et al. [4] proposed a quantitative model for closed loop supply chain. He investigated that the amount of returns is highly uncertain and this uncertainty greatly affect the collection and inventory decisions. Savaskan et al. [14] developed a reverse logistic inventory model considering the return rate is affected by the collection investment. They analyzed a decentralized supply chain, in which all participants pursue their own profit. The collection investment represents the economic amount of effort (e.g.,…show more content…
We developed a model assuming the forward supply chain and remanufacturing the returned items whose quality standards is inferior to the new products. So these remanufactured products are delivered to the secondary market and sold in the bulk state. To make the study realistic we assume the dependence of demand on stock and price. A constant amount of the returned items is scraped. A general framework of such a system is shown in fig. 1. The next section is for assumption and notations. Section 3 is for the formulation of the model. A solution procedure for the model is given in the section 4. Section 5 is for numerical analysis, sensitivity analysis is also presented in this section. At last concluding remark is given in section

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