- Volume 9 Issue 4
In the last few years growing interest has been dedicated to supply chain management. Modeling complexity is added to supply chain coordination problem by accounting for reverse logistics activities. The objective of this paper is to extend inventory model of manufacturing factory with respect to the production of raw material of forward logistics and recycling material of reverse logistics. The proposed model is applied to a plastic recycling process plant located in Taiwan. The case study improvement scheme shows when the recycling rate of recycling material increases from 15% to 50%, the total inventory cost of manufacturing factory decreases by 12.82%, safety stock volume decreases by 41.19% and the reorder quantity is down by 50.96%. This paper finds whether the results of the model can reach the economic profit through quantitative analysis and encourages companies integrate reverse logistics into the supply chain system.
Reverse Logistics;Remanufacture;Inventory Management
- Arijit Bhattacharya, Bijan Sarkar, and Sanat K. Mukherjee (2007), Distance-based consensus method for ABC analysis, International Journal of Production Research, 45(15), 3405-3420. https://doi.org/10.1080/00207540600847145
- Chan, H. K. (2007), A pro-active and collaborative approach to reverse logistics-a case study, Production Planning and Control, 18(4), 350-360. https://doi.org/10.1080/09537280701318736
- Depuy, G. W., Usher, J. S., Walker, R. L., and Taylor, G. D. (2007), Production planning for remanufactured products, Production Planning and Control, 18(7), 573-583. https://doi.org/10.1080/09537280701542210
- Guide Jr., V. D. R. and Srivastava, R. (1997), An evaluation of order release strategies in a remanufacturing environment, Computer Operations Research, 24(1), 37-47. https://doi.org/10.1016/S0305-0548(96)00023-8
- Guo, J., Ko, Y. D., and Hwang, H. (2010), A manufacturing/ remanufacturing system with the consideration of required quality of end-of-used products, Industrial Engineering and Management Systems, 9(3), 204-214. https://doi.org/10.7232/iems.2010.9.3.204
- Jonsson, P. and Mattisson, S.-A. (2008), Inventory management practices and their implications on perceived planning performance, International Journal of Production Research, 46(7), 1787-1812. https://doi.org/10.1080/00207540600988071
- Louly, M. A., Dolgui, A., and Hnaien, F., Optimal supply planning in MRP environments for assembly systems with random component procurement times, International Journal of Production Research, 46 (9), 5441-5467.
- Ouyang, Huiqing and Zhu, Xiangyang (2009), A simple algorithm for the basic (R, Q) inventory control model with return flow, Asia-Pacific Journal of Operational Research, 26(3), 383-398. https://doi.org/10.1142/S0217595909002262
- Silver, E. A., Pyke, D. F. and Peterson, R. (1998), Inventory management and production planning and scheduling, 3rd ed, J. Wiley.
- Stefan, Minner, (2001), Strategic safety stocks in reverse logistics supply chain, International Journal of Production Economics, 71, 417-428. https://doi.org/10.1016/S0925-5273(00)00138-9
- Vachon, Stephan (2007), Green supply chain practices and the selection of environmental technologies, International Journal of Production Research, 45 (18-19), 4357-4379. https://doi.org/10.1080/00207540701440303
- Van der Laan, E., Dekker, R., Salomon, M., and Ridder, A. (1996), An (s, Q) inventory model with remanufacturing and disposal, International Journal Production Economics, 46(2), 339-350.
- Cachon, G. P. (1999), Managing supply chain demand variability with scheduled ordering policies, Management Science, 45(6), 843-856. https://doi.org/10.1287/mnsc.45.6.843
- DeCroix, G. A. and Zipkin, P. H. (2005), Inventroy management an assembly system with product or component retuen, Management Science, 51(8), 1250- 1265. https://doi.org/10.1287/mnsc.1050.0394