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Determination of recovery effort for a probabilistic recovery system under various inventory control policies

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  • BayIndIr, Z. Pelin
  • Dekker, Rommert
  • Porras, Eric

Abstract

In this study we investigate the desired level of recovery under various inventory control policies when the success of recovery is probabilistic. All the used and returned items go into a recovery process that is modelled as a single stage operation. The recovery effort is represented by the expected time spent for it. The effect of increasing recovery effort on the success probability together with unit cost of the operation is included by assuming general forms of dependencies. Alternative to recovered items, demand is satisfied by brand-new items. Four inventory control policies that differ in timing of and information used in purchasing decision are proposed. The objective is to find the recovery level together with inventory control parameter that minimize the long-run average total cost. A numerical study covering a wide range of system parameters is carried out. Finally computational results are presented with their managerial implications.

Suggested Citation

  • BayIndIr, Z. Pelin & Dekker, Rommert & Porras, Eric, 2006. "Determination of recovery effort for a probabilistic recovery system under various inventory control policies," Omega, Elsevier, vol. 34(6), pages 571-584, December.
    • Handle: RePEc:eee:jomega:v:34:y:2006:i:6:p:571-584
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    References listed on IDEAS

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    1. van der Laan, Erwin, 2003. "An NPV and AC analysis of a stochastic inventory system with joint manufacturing and remanufacturing," International Journal of Production Economics, Elsevier, vol. 81(1), pages 317-331, January.
    2. Teunter, Ruud & van der Laan, Erwin, 2002. "On the non-optimality of the average cost approach for inventory models with remanufacturing," International Journal of Production Economics, Elsevier, vol. 79(1), pages 67-73, September.
    3. Ferrer, Geraldo, 2003. "Yield information and supplier responsiveness in remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 149(3), pages 540-556, September.
    4. Teunter, Ruud H. & van der Laan, Erwin & Inderfurth, Karl, 2000. "How to set the holding cost rates in average cost inventory models with reverse logistics?," Omega, Elsevier, vol. 28(4), pages 409-415, August.
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    Cited by:

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    2. Chung, Chun-Jen & Wee, Hui-Ming, 2011. "Short life-cycle deteriorating product remanufacturing in a green supply chain inventory control system," International Journal of Production Economics, Elsevier, vol. 129(1), pages 195-203, January.
    3. García-Alvarado, M.S. & Paquet, M. & Chaabane, A., 2015. "On inventory control of product recovery systems subject to environmental mechanisms," International Journal of Production Economics, Elsevier, vol. 165(C), pages 132-144.
    4. Pokharel, Shaligram & Mutha, Akshay, 2009. "Perspectives in reverse logistics: A review," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 175-182.
    5. Chung, Chun-Jen & Wee, Hui-Ming, 2008. "Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 528-545, June.

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