Abstract
Offering a well-designed reverse supply chain programme can significantly improve the ability of any organisation to differentiate itself, and even to take market share away, from its competitors. Reverse supply chain considerations should be a part of an organisation's corporate strategy. From a macro-level perspective, value propositions of reverse supply chains in for an organisation, and/or the industry in which the organisation operates, include considerations for both strategies (to reuse, repair, refurbish, remanufacture, retrieve parts or cannibalise components, recycle, scrap, redesign returned products, etc.) and effective operations (to handle and sort returns by value and ease of remanufacture) to sustain and even enhance organisational competency. In this article, we examine the role of sorting used products before disassembly for parts retrieval and remanufacturing under stochastic variability based on customer demand using a Markov decision process. We address a problem of managing costs in a remanufacturing environment with stochastically variable demand and model it for two types of used parts. Each part type is assumed to have varying quality and acquisition costs. The cost function includes manufacturing, holding and backlog costs components. We compute optimal purchase policy that maximises the expected average profit per period. Using a case example from photocopier industry, numerical analysis is performed to study the implications of various holding cost for two parts on optimal purchase policy in remanufacturing environments.
| Original language | English |
|---|---|
| Pages (from-to) | 205-215 |
| Number of pages | 11 |
| Journal | Production Planning and Control |
| Volume | 23 |
| Issue number | 2-3 |
| DOIs | |
| Publication status | Published - 2012 Feb 1 |
| Externally published | Yes |
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Keywords
- Markov decision process
- Optimal sorting policy
- Remanufacturing system
- Reverse supply chains
ASJC Scopus subject areas
- Computer Science Applications
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
Cite this
Enhancing value in reverse supply chains by sorting before product recovery. / Loomba, Arvinder P.S.; Nakashima, Kenichi.
In: Production Planning and Control, Vol. 23, No. 2-3, 01.02.2012, p. 205-215.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Enhancing value in reverse supply chains by sorting before product recovery
AU - Loomba, Arvinder P.S.
AU - Nakashima, Kenichi
PY - 2012/2/1
Y1 - 2012/2/1
N2 - Offering a well-designed reverse supply chain programme can significantly improve the ability of any organisation to differentiate itself, and even to take market share away, from its competitors. Reverse supply chain considerations should be a part of an organisation's corporate strategy. From a macro-level perspective, value propositions of reverse supply chains in for an organisation, and/or the industry in which the organisation operates, include considerations for both strategies (to reuse, repair, refurbish, remanufacture, retrieve parts or cannibalise components, recycle, scrap, redesign returned products, etc.) and effective operations (to handle and sort returns by value and ease of remanufacture) to sustain and even enhance organisational competency. In this article, we examine the role of sorting used products before disassembly for parts retrieval and remanufacturing under stochastic variability based on customer demand using a Markov decision process. We address a problem of managing costs in a remanufacturing environment with stochastically variable demand and model it for two types of used parts. Each part type is assumed to have varying quality and acquisition costs. The cost function includes manufacturing, holding and backlog costs components. We compute optimal purchase policy that maximises the expected average profit per period. Using a case example from photocopier industry, numerical analysis is performed to study the implications of various holding cost for two parts on optimal purchase policy in remanufacturing environments.
AB - Offering a well-designed reverse supply chain programme can significantly improve the ability of any organisation to differentiate itself, and even to take market share away, from its competitors. Reverse supply chain considerations should be a part of an organisation's corporate strategy. From a macro-level perspective, value propositions of reverse supply chains in for an organisation, and/or the industry in which the organisation operates, include considerations for both strategies (to reuse, repair, refurbish, remanufacture, retrieve parts or cannibalise components, recycle, scrap, redesign returned products, etc.) and effective operations (to handle and sort returns by value and ease of remanufacture) to sustain and even enhance organisational competency. In this article, we examine the role of sorting used products before disassembly for parts retrieval and remanufacturing under stochastic variability based on customer demand using a Markov decision process. We address a problem of managing costs in a remanufacturing environment with stochastically variable demand and model it for two types of used parts. Each part type is assumed to have varying quality and acquisition costs. The cost function includes manufacturing, holding and backlog costs components. We compute optimal purchase policy that maximises the expected average profit per period. Using a case example from photocopier industry, numerical analysis is performed to study the implications of various holding cost for two parts on optimal purchase policy in remanufacturing environments.
KW - Markov decision process
KW - Optimal sorting policy
KW - Remanufacturing system
KW - Reverse supply chains
UR - http://www.scopus.com/inward/record.url?scp=84856553991&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84856553991&partnerID=8YFLogxK
U2 - 10.1080/09537287.2011.591652
DO - 10.1080/09537287.2011.591652
M3 - Article
AN - SCOPUS:84856553991
VL - 23
SP - 205
EP - 215
JO - Production Planning and Control
JF - Production Planning and Control
SN - 0953-7287
IS - 2-3
ER -