IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v59y2022i3d10.1007_s12597-021-00558-w.html
   My bibliography  Save this article

A closed-loop supply chain model with learning effect, random return and imperfect inspection under price- and quality-dependent demand

Author

Listed:
  • M. Masanta

    (Jadavpur University)

  • B. C. Giri

    (Jadavpur University)

Abstract

This paper addresses a closed-loop supply chain consisting of a manufacturer and a retailer. While producing a single item, the manufacturer executes a perfect production process influenced by learning effect. Production process is supported by raw materials as well as used materials. Collected used items follow an inspection process which is subject to learning and incurs Type I and Type II errors. Return of used items is random. The demand of the end-product is in a linear relationship with retail price and product quality. The proposed model is developed and optimal results are analysed with a numerical example. Sensitivity analysis is carried out to investigate the effects of various parameters on optimal decisions. It is observed from the numerical study that higher learning in production and inspection results in achieving a higher system profit, and the price sensitivity factor in demand has a significant impact on the retail price. Some important managerial insights of the proposed model are also discussed.

Suggested Citation

  • M. Masanta & B. C. Giri, 2022. "A closed-loop supply chain model with learning effect, random return and imperfect inspection under price- and quality-dependent demand," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 1094-1115, September.
    • Handle: RePEc:spr:opsear:v:59:y:2022:i:3:d:10.1007_s12597-021-00558-w
    DOI: 10.1007/s12597-021-00558-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-021-00558-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-021-00558-w?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. B.C. Giri & Christoph H. Glock, 2017. "A closed-loop supply chain with stochastic product returns and worker experience under learning and forgetting," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6760-6778, November.
    2. Inderfurth, Karl, 2004. "Optimal policies in hybrid manufacturing/remanufacturing systems with product substitution," International Journal of Production Economics, Elsevier, vol. 90(3), pages 325-343, August.
    3. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2009. "Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return," International Journal of Production Economics, Elsevier, vol. 121(1), pages 255-265, September.
    4. David A. Schrady, 1967. "A deterministic inventory model for reparable items," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(3), pages 391-398.
    5. Giri, B. C. & Glock, C. H., 2017. "A closed-loop supply chain with stochastic product returns and worker experience under learning and forgetting," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 88878, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Stanley Baiman & Paul E. Fischer & Madhav V. Rajan, 2000. "Information, Contracting, and Quality Costs," Management Science, INFORMS, vol. 46(6), pages 776-789, June.
    7. Inderfurth, K. & de Kok, A. G. & Flapper, S. D. P., 2001. "Product recovery in stochastic remanufacturing systems with multiple reuse options," European Journal of Operational Research, Elsevier, vol. 133(1), pages 130-152, August.
    8. Glock, C. H. & Jaber, M. Y., 2013. "A multi-stage production-inventory model with learning and forgetting effects, rework and scrap," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 59034, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Khan, M. & Jaber, M.Y. & Wahab, M.I.M., 2010. "Economic order quantity model for items with imperfect quality with learning in inspection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 87-96, March.
    10. T. M. Whitin, 1955. "Inventory Control and Price Theory," Management Science, INFORMS, vol. 2(1), pages 61-68, October.
    11. Jaber, Mohamad Y. & El Saadany, Ahmed M.A., 2011. "An economic production and remanufacturing model with learning effects," International Journal of Production Economics, Elsevier, vol. 131(1), pages 115-127, May.
    12. 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.
    13. Karimi-Mamaghan, Maryam & Mohammadi, Mehrdad & Jula, Payman & Pirayesh, Amir & Ahmadi, Hadi, 2020. "A learning-based metaheuristic for a multi-objective agile inspection planning model under uncertainty," European Journal of Operational Research, Elsevier, vol. 285(2), pages 513-537.
    14. Khan, M. & Jaber, M.Y. & Guiffrida, A.L. & Zolfaghari, S., 2011. "A review of the extensions of a modified EOQ model for imperfect quality items," International Journal of Production Economics, Elsevier, vol. 132(1), pages 1-12, July.
    15. De Giovanni, Pietro, 2011. "Quality improvement vs. advertising support: Which strategy works better for a manufacturer?," European Journal of Operational Research, Elsevier, vol. 208(2), pages 119-130, January.
    16. Debabrata Das & Pankaj Dutta, 2015. "Design and analysis of a closed-loop supply chain in presence of promotional offer," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 141-165, January.
    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. Basim S. O. Alsaedi, 2024. "A Sustainable Supply Chain Model with a Setup Cost Reduction Policy for Imperfect Items under Learning in a Cloudy Fuzzy Environment," Mathematics, MDPI, vol. 12(10), pages 1-33, May.
    2. Basim S. O. Alsaedi & Osama Abdulaziz Alamri & Mahesh Kumar Jayaswal & Mandeep Mittal, 2023. "A Sustainable Green Supply Chain Model with Carbon Emissions for Defective Items under Learning in a Fuzzy Environment," Mathematics, MDPI, vol. 11(2), pages 1-36, January.

    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. B. C. Giri & M. Masanta, 2022. "A closed-loop supply chain model with uncertain return and learning-forgetting effect in production under consignment stock policy," Operational Research, Springer, vol. 22(2), pages 947-975, April.
    2. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    3. Hsieh, Chung-Chi & Lathifah, Artya, 2022. "Ordering and waste reuse decisions in a make-to-order system under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1290-1303.
    4. Leopoldo Eduardo Cárdenas-Barrón & María José Lea Plaza-Makowsky & María Alejandra Sevilla-Roca & José María Núñez-Baumert & Buddhadev Mandal, 2021. "An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price," Mathematics, MDPI, vol. 9(12), pages 1-20, June.
    5. Felix T.S. Chan & Nan Li & S.H. Chung & Mozafar Saadat, 2017. "Management of sustainable manufacturing systems-a review on mathematical problems," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1210-1225, February.
    6. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.
    7. Lucas Dias Condeixa & Pierry Silva & Diego Moah & Brenda Farias & Adriana Leiras, 2022. "Evaluating cost impacts on reverse logistics using an Economic Order Quantity (EOQ) model with environmental and social considerations," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 921-940, September.
    8. Lee, Sunghee & Kim, Daeki, 2014. "An optimal policy for a single-vendor single-buyer integrated production–distribution model with both deteriorating and defective items," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 161-170.
    9. Chayanika Rout & Ravi Shankar Kumar & Debjani Chakraborty & Adrijit Goswami, 2019. "An EPQ model for deteriorating items with imperfect production, inspection errors, rework and shortages : a type-2 fuzzy approach," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 657-688, September.
    10. S. Malolan & M. Mathirajan & M. K. Tiwari, 2020. "A methodology for determining the optimal reverse flow capacities and the breakeven period for a multi products-component remanufacturing problem of an OEM," Operations Management Research, Springer, vol. 13(3), pages 233-248, December.
    11. Hsu, Jia-Tzer & Hsu, Lie-Fern, 2013. "An EOQ model with imperfect quality items, inspection errors, shortage backordering, and sales returns," International Journal of Production Economics, Elsevier, vol. 143(1), pages 162-170.
    12. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    13. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    14. M. Masanta & B. C. Giri, 2022. "A manufacturing–remanufacturing supply chain model with learning and forgetting in inspection under consignment stock agreement," Operational Research, Springer, vol. 22(4), pages 4093-4117, September.
    15. 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.
    16. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    17. Nita H. Shah & Dushyantkumar G. Patel & Digeshkumar B. Shah, 2018. "EPQ model for returned/reworked inventories during imperfect production process under price-sensitive stock-dependent demand," Operational Research, Springer, vol. 18(2), pages 343-359, July.
    18. Alireza Kabirian, 2012. "The economic production and pricing model with lot-size-dependent production cost," Journal of Global Optimization, Springer, vol. 54(1), pages 1-15, September.
    19. József Vörös, 2013. "Economic order and production quantity models without constraint on the percentage of defective items," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(4), pages 867-885, December.
    20. Hua, Meina & Lai, Ivan Ka Wai & Tang, Huajun, 2019. "Analysis of advertising and a points-exchange incentive in a reverse supply chain for unwanted medications in households based on Game Theory," International Journal of Production Economics, Elsevier, vol. 217(C), pages 259-268.

    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:spr:opsear:v:59:y:2022:i:3:d:10.1007_s12597-021-00558-w. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.