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Optimal production planning in a hybrid manufacturing and recovering system based on the internet of things with closed loop supply chains

Author

Listed:
  • Chang Fang

    (Hefei University of Technology
    University of Florida
    Key Laboratory of Process Optimization and Intelligent Decision-making of Ministry of Education)

  • Xinbao Liu

    (Hefei University of Technology
    Key Laboratory of Process Optimization and Intelligent Decision-making of Ministry of Education)

  • Jun Pei

    (Hefei University of Technology
    University of Florida
    Key Laboratory of Process Optimization and Intelligent Decision-making of Ministry of Education)

  • Wenjuan Fan

    (Hefei University of Technology
    Key Laboratory of Process Optimization and Intelligent Decision-making of Ministry of Education)

  • Panos M. Pardalos

    (University of Florida)

Abstract

During the last decades many companies have to retrieve and treat their end-of-use products when products leave their end users in order to contribute to environmental protection and avoid defiance of relevant legislations. The utilization of returned products in a proper way is the best choice to conform to the above requirement, and save the cost in the production and maintenance process as well. With the development of information technologies, especially the internet of things used in product life cycle data management, the product life cycle information can be tracked, detected, stored and used in the returned product process. In this paper, an integer linear programming model is presented based on the detail product information for the optimization of procurement, manufacturing, recovering and disposal decisions. The model considers three recovery options, several value levels of returns and the value deterioration during the processing time period in order to satisfy the products and components demand in the production planning. A numerical example and sensitivity analysis are used to illustrate the performance and applicability of the model.

Suggested Citation

  • Chang Fang & Xinbao Liu & Jun Pei & Wenjuan Fan & Panos M. Pardalos, 2016. "Optimal production planning in a hybrid manufacturing and recovering system based on the internet of things with closed loop supply chains," Operational Research, Springer, vol. 16(3), pages 543-577, October.
    • Handle: RePEc:spr:operea:v:16:y:2016:i:3:d:10.1007_s12351-015-0213-x
    DOI: 10.1007/s12351-015-0213-x
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    References listed on IDEAS

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    4. Christos I. Papanagnou, 2022. "Measuring and eliminating the bullwhip in closed loop supply chains using control theory and Internet of Things," Annals of Operations Research, Springer, vol. 310(1), pages 153-170, March.
    5. Anhang Chen & Huiqin Zhang & Yuxiang Zhang & Junwei Zhao, 2024. "Manufacturers’ digital transformation under carbon cap-and-trade policy: investment strategy and environmental impact," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    6. Amin Yazdekhasti & Yahia Zare Mehrjardi, 2020. "Two-echelon three-indenture warranty distribution network: a hybrid branch and bound, Monte-Carlo approach," Operational Research, Springer, vol. 20(2), pages 1113-1158, June.
    7. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    8. Junhai Ma & Liqing Zhu & Yani Guo, 2021. "Strategies and stability study for a triopoly game considering product recovery based on closed-loop supply chain," Operational Research, Springer, vol. 21(4), pages 2261-2282, December.
    9. Donya Rahmani & Arash Zandi & Sara Behdad & Arezou Entezaminia, 2021. "A light robust model for aggregate production planning with consideration of environmental impacts of machines," Operational Research, Springer, vol. 21(1), pages 273-297, March.
    10. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    11. Muyldermans, L. & Van Wassenhove, L.N. & Guide, V.D.R., 2019. "Managing high-end ex-demonstration product returns," European Journal of Operational Research, Elsevier, vol. 277(1), pages 195-214.
    12. Abderahman Rejeb & Andrea Appolloni, 2022. "The Nexus of Industry 4.0 and Circular Procurement: A Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(23), pages 1-21, November.
    13. Alqahtani, Ammar Y. & Gupta, Surendra M. & Nakashima, Kenichi, 2019. "Warranty and maintenance analysis of sensor embedded products using internet of things in industry 4.0," International Journal of Production Economics, Elsevier, vol. 208(C), pages 483-499.

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