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Supply planning for a closed-loop system with uncertain demand and return

Author

Listed:
  • Sanjida Rouf
  • Guoqing Zhang

Abstract

This paper considers a supply network consisting of a manufacturer, its external suppliers, and a remanufacturing facility. The manufacturer, facing an uncertain market demand and return, has two options for supplying parts: either ordering the required parts from external suppliers or remanufacturing used products and bringing those back to 'as good as new' conditions. We proposed a general framework for this multi-product, closed-loop system and developed a non-linear programming (NLP) model to maximise the total expected profit by optimally deciding quantity of parts to be remanufactured and quantity of parts to be purchased from external suppliers. We solved the mathematical model using GAMS and CONOPT. With a numerical example, we introduced sensitivity analysis to illustrate the interacting effects among critical parameters in the model.

Suggested Citation

  • Sanjida Rouf & Guoqing Zhang, 2011. "Supply planning for a closed-loop system with uncertain demand and return," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 10(4), pages 380-397.
    • Handle: RePEc:ids:ijores:v:10:y:2011:i:4:p:380-397
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    Citations

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    Cited by:

    1. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    2. Seyed Ahmad Yazdian & Kamran Shahanaghi & Ahmad Makui, 2016. "Joint optimisation of price, warranty and recovery planning in remanufacturing of used products under linear and non-linear demand, return and cost functions," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(5), pages 1155-1175, April.

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