The yield rate paradox in closed-loop supply chains

نویسندگان

چکیده

We investigate the dynamics of a closed-loop make-to-stock supply chain consisting remanufacturer and manufacturer with first-order vector auto-regressive demand return process. Remanufactured products, considered as-good-as-new, partially satisfy market demand; newly manufactured products fill remainder. The cooperate to minimize sum 1) capacity costs at remanufacturing manufacturing processes, 2) finished goods inventory holding backlog cost, 3) cost dispose returned items not re-manufactured 4) collection cost. inspects in triage Only predetermined fraction (the yield rate) returns are re-manufactured. impact on system-wide In cost-sensitive setting, when unit is lower than manufacturing, it seems reasonable conjecture that higher yields lead costs. show always convex rate, suggesting could actually increase even This rate paradox originates from increased creating additional variability activities. By investigating boundary conditions we find minimal disposal penalty required entice process all returns.

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ژورنال

عنوان ژورنال: International Journal of Production Economics

سال: 2021

ISSN: ['0925-5273', '1873-7579']

DOI: https://doi.org/10.1016/j.ijpe.2021.108187