IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v67y2014icp141-161.html
   My bibliography  Save this article

A hybrid two-stock inventory control model for a reverse supply chain

Author

Listed:
  • Zolfagharinia, Hossein
  • Hafezi, Maryam
  • Farahani, Reza Zanjirani
  • Fahimnia, Behnam

Abstract

This paper develops an inventory control model for a reverse supply chain with separate serviceable and remanufacturable inventory stock points. Return rate is expressed stochastically as a function of product demand. Variation in demand distribution during product life-cycle is modeled using a new order-up-to replenishment policy incorporating five maximum inventory levels corresponding to five product life cycle stages. A near optimum solution to this problem is sought using a hybrid solution method integrating a discrete event simulation with a meta-heuristic search method. Real data from an Australian case company is utilized to design test experiments for model validation and evaluation.

Suggested Citation

  • Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    • Handle: RePEc:eee:transe:v:67:y:2014:i:c:p:141-161
    DOI: 10.1016/j.tre.2014.04.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554514000611
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2014.04.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Inderfurth, Karl & van der Laan, Erwin, 2001. "Leadtime effects and policy improvement for stochastic inventory control with remanufacturing," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 381-390, May.
    2. Vlachos, Dimitrios & Dekker, Rommert, 2003. "Return handling options and order quantities for single period products," European Journal of Operational Research, Elsevier, vol. 151(1), pages 38-52, November.
    3. Mostard, Julien & Teunter, Ruud, 2006. "The newsboy problem with resalable returns: A single period model and case study," European Journal of Operational Research, Elsevier, vol. 169(1), pages 81-96, February.
    4. Kiesmuller, Gudrun P. & Scherer, Carsten W., 2003. "Computational issues in a stochastic finite horizon one product recovery inventory model," European Journal of Operational Research, Elsevier, vol. 146(3), pages 553-579, May.
    5. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    6. Kiesmuller, Gudrun P. & van der Laan, Erwin A., 2001. "An inventory model with dependent product demands and returns," International Journal of Production Economics, Elsevier, vol. 72(1), pages 73-87, June.
    7. van der Laan, Erwin A. & Teunter, Ruud H., 2006. "Simple heuristics for push and pull remanufacturing policies," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1084-1102, December.
    8. G P Kiesmüller & S Minner, 2003. "Simple expressions for finding recovery system inventory control parameter values," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(1), pages 83-88, January.
    9. Konstantaras, I. & Papachristos, S., 2008. "A note on: Developing an exact solution for an inventory system with product recovery," International Journal of Production Economics, Elsevier, vol. 111(2), pages 707-712, February.
    10. Hill, Roger M., 1996. "Batching policies for a product life cycle," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 421-427, August.
    11. Teunter, Ruud & Tang, Ou & Kaparis, Konstantinos, 2009. "Heuristics for the economic lot scheduling problem with returns," International Journal of Production Economics, Elsevier, vol. 118(1), pages 323-330, March.
    12. Fleischmann, Moritz & Kuik, Roelof & Dekker, Rommert, 2002. "Controlling inventories with stochastic item returns: A basic model," European Journal of Operational Research, Elsevier, vol. 138(1), pages 63-75, April.
    13. Hellström, Daniel & Johansson, Ola, 2010. "The impact of control strategies on the management of returnable transport items," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1128-1139, November.
    14. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
    15. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    16. Li, Jianzhi & González, Miguel & Zhu, Yun, 2009. "A hybrid simulation optimization method for production planning of dedicated remanufacturing," International Journal of Production Economics, Elsevier, vol. 117(2), pages 286-301, February.
    17. Hansen, Pierre & Mladenovic, Nenad, 2001. "Variable neighborhood search: Principles and applications," European Journal of Operational Research, Elsevier, vol. 130(3), pages 449-467, May.
    18. Timmer, Judith & Chessa, Michela & Boucherie, Richard J., 2013. "Cooperation and game-theoretic cost allocation in stochastic inventory models with continuous review," European Journal of Operational Research, Elsevier, vol. 231(3), pages 567-576.
    19. Fleischmann, Moritz & Kuik, Roelof, 2003. "On optimal inventory control with independent stochastic item returns," European Journal of Operational Research, Elsevier, vol. 151(1), pages 25-37, November.
    20. van Donselaar, Karel H. & Broekmeulen, Rob A.C.M., 2013. "Determination of safety stocks in a lost sales inventory system with periodic review, positive lead-time, lot-sizing and a target fill rate," International Journal of Production Economics, Elsevier, vol. 143(2), pages 440-448.
    21. Young Yun, Won & Mi Lee, Yu & Seok Choi, Yong, 2011. "Optimal inventory control of empty containers in inland transportation system," International Journal of Production Economics, Elsevier, vol. 133(1), pages 451-457, September.
    22. Özceylan, Eren & Paksoy, Turan & Bektaş, Tolga, 2014. "Modeling and optimizing the integrated problem of closed-loop supply chain network design and disassembly line balancing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 142-164.
    23. Vercraene, Samuel & Gayon, Jean-Philippe, 2013. "Optimal control of a production-inventory system with productreturns," International Journal of Production Economics, Elsevier, vol. 142(2), pages 302-310.
    24. Mahadevan, B. & Pyke, David F. & Fleischmann, Moritz, 2003. "Periodic review, push inventory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 151(3), pages 536-551, December.
    25. Teunter, Ruud H. & Vlachos, Dimitrios, 2002. "On the necessity of a disposal option for returned items that can be remanufactured," International Journal of Production Economics, Elsevier, vol. 75(3), pages 257-266, February.
    26. Hu, Tung-Lai & Sheu, Jiuh-Biing & Huang, Kuan-Hsiung, 2002. "A reverse logistics cost minimization model for the treatment of hazardous wastes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(6), pages 457-473, November.
    27. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.
    28. 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.
    29. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    2. Govindan, Kannan & Gholizadeh, Hadi, 2021. "Robust network design for sustainable-resilient reverse logistics network using big data: A case study of end-of-life vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    3. Tosarkani, Babak Mohamadpour & Amin, Saman Hassanzadeh & Zolfagharinia, Hossein, 2020. "A scenario-based robust possibilistic model for a multi-objective electronic reverse logistics network," International Journal of Production Economics, Elsevier, vol. 224(C).
    4. Tianji Yang & Chao Fu & Xinbao Liu & Jun Pei & Lin Liu & Panos M. Pardalos, 2018. "Closed-loop supply chain inventory management with recovery information of reusable containers," Journal of Combinatorial Optimization, Springer, vol. 35(1), pages 266-292, January.
    5. Hafezi, Maryam & Zolfagharinia, Hossein, 2018. "Green product development and environmental performance: Investigating the role of government regulations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 395-410.
    6. Shen, Jiayu, 2020. "An environmental supply chain network under uncertainty," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 542(C).
    7. Haolan Liao & Qianwang Deng & Yuanrui Wang, 2017. "Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand," Sustainability, MDPI, vol. 9(3), pages 1-19, February.
    8. Pourmohammad Zia, Nadia & Taleizadeh, Ata Allah, 2015. "A lot-sizing model with backordering under hybrid linked-to-order multiple advance payments and delayed payment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 19-37.
    9. Raquel Lopes Oliveira & Liliane Dolores Fagundes & Renato da Silva Lima & Marcelo Montaño, 2020. "Discrete event simulation to aid decision-making and mitigation in solid waste management," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 67-85, January.
    10. Liao, Haolan & Zhang, Qingyu & Li, Lu, 2023. "Optimal procurement strategy for multi-echelon remanufacturing systems under quality uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    11. Dai, Zhuo & Aqlan, Faisal & Gao, Kuo, 2017. "Optimizing multi-echelon inventory with three types of demand in supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 141-177.
    12. Dev, Navin K. & Shankar, Ravi & Choudhary, Alok, 2017. "Strategic design for inventory and production planning in closed-loop hybrid systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 345-353.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    2. Tsiliyannis, Christos Aristeides, 2018. "Markov chain modeling and forecasting of product returns in remanufacturing based on stock mean-age," European Journal of Operational Research, Elsevier, vol. 271(2), pages 474-489.
    3. Kilic, Onur A. & Tunc, Huseyin & Tarim, S. Armagan, 2018. "Heuristic policies for the stochastic economic lot sizing problem with remanufacturing under service level constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1102-1109.
    4. Corbacioglu, Umut & van der Laan, Erwin A., 2007. "Setting the holding cost rates in a two-product system with remanufacturing," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 185-194, September.
    5. Gregory A. DeCroix, 2006. "Optimal Policy for a Multiechelon Inventory System with Remanufacturing," Operations Research, INFORMS, vol. 54(3), pages 532-543, June.
    6. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    7. Gökbayrak, Esra & Kayış, Enis, 2023. "Single item periodic review inventory control with sales dependent stochastic return flows," International Journal of Production Economics, Elsevier, vol. 255(C).
    8. Sebnem Ahiska, S. & King, Russell E., 2010. "Inventory optimization in a one product recoverable manufacturing system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 11-19, March.
    9. Flapper, Simme Douwe & Gayon, Jean-Philippe & Lim, Lâm Laurent, 2014. "On the optimal control of manufacturing and remanufacturing activities with a single shared server," European Journal of Operational Research, Elsevier, vol. 234(1), pages 86-98.
    10. Gregory A. DeCroix & Jing-Sheng Song & Paul H. Zipkin, 2009. "Managing an Assemble-to-Order System with Returns," Manufacturing & Service Operations Management, INFORMS, vol. 11(1), pages 144-159, October.
    11. Moritz Fleischmann & Jo A. E. E. van Nunen & Ben Gräve, 2003. "Integrating Closed-Loop Supply Chains and Spare-Parts Management at IBM," Interfaces, INFORMS, vol. 33(6), pages 44-56, December.
    12. Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
    13. Zerhouni, Hichem & Gayon, Jean-Philippe & Frein, Yannick, 2013. "Influence of dependency between demands and returns in a reverse logistics system," International Journal of Production Economics, Elsevier, vol. 143(1), pages 62-71.
    14. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
    15. Wenting Pan & Candice H. Huynh, 2023. "Optimal operational strategies for online retailers with demand and return uncertainty," Operations Management Research, Springer, vol. 16(2), pages 755-767, June.
    16. Corbacıoğlu, U. & van der Laan, E.A., 2005. "Setting the holding cost rates in a multi-product system with remanufacturing," ERIM Report Series Research in Management ERS-2005-072-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Tang, Ou & Grubbstrom, Robert W., 2005. "Considering stochastic lead times in a manufacturing/remanufacturing system with deterministic demands and returns," International Journal of Production Economics, Elsevier, vol. 93(1), pages 285-300, January.
    18. Goedhart, Joost & Haijema, René & Akkerman, Renzo, 2023. "Modelling the influence of returns for an omni-channel retailer," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1248-1263.
    19. Kannan, Devika & Diabat, Ali & Alrefaei, Mahmoud & Govindan, Kannan & Yong, Geng, 2012. "A carbon footprint based reverse logistics network design model," Resources, Conservation & Recycling, Elsevier, vol. 67(C), pages 75-79.
    20. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:67:y:2014:i:c:p:141-161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.