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A closed-loop recycling system with a minimum allowed quality level on returned products

Author

Listed:
  • Hark Hwang
  • Young Dae Ko
  • Sang Hun Yune
  • Chang Seong Ko

Abstract

This paper deals with a closed-loop recycling system in which a stationary demand is satisfied by remanufactured products as well as newly manufactured products. In this system, only those used products that satisfy a minimum allowed quality level are bought back from customers for recycling. Thus the collection rate of used products is expressed as a function of the quality level and the unit bought-back price. It is assumed that the cycle consists of a single remanufacturing run and a single manufacturing run, both in Economic Production Quantity settings. Treating the quality of recycled products as a random variable, we develop a mathematical model with the objective of minimising the production and inventory costs. The decision variables are the length of the cycle, the minimum allowed quality level and the unit bought-back price of used products. To illustrate the validity of the model, sample problems are solved.

Suggested Citation

  • Hark Hwang & Young Dae Ko & Sang Hun Yune & Chang Seong Ko, 2009. "A closed-loop recycling system with a minimum allowed quality level on returned products," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 5(6), pages 758-773.
    • Handle: RePEc:ids:ijsoma:v:5:y:2009:i:6:p:758-773
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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. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh, 2019. "A consignment stock scheme for closed loop supply chain with imperfect manufacturing processes, lost sales, and quality dependent return: Multi Levels Structure," International Journal of Production Economics, Elsevier, vol. 217(C), pages 298-316.
    3. Ullah, Mehran & Sarkar, Biswajit, 2020. "Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality," International Journal of Production Economics, Elsevier, vol. 219(C), pages 360-374.
    4. Rubayet Karim & Koichi Nakade, 2022. "A Literature Review on the Sustainable EPQ Model, Focusing on Carbon Emissions and Product Recycling," Logistics, MDPI, vol. 6(3), pages 1-16, August.

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