Decision model to determine the return sources, incentives, and capacity in a remanufacturing system
DOI:
https://doi.org/10.36561/ING.19.2Keywords:
Supply chain management, Closed loop, Reverse logistics, Incentives, Remanufacturing, SuppliersAbstract
This research proposes a decision model to manage the purchase of new and used components in a re-manufacturing system. New components are purchased from a supplier who offers discounts based on the reserved capacity. The used components comes from various sources, where the quantity to be received from each source depends on the incentive provided. The model considers two stochastic elements: the return level per source (for used components) and the possibility that the shipment of new components is not received. A sensitivity analysis is performed based on a numerical example. The results demonstrate significant relationships between the costs to operate the return sources, the probability of low returns, and the incentive levels assigned to each source. The experiments also indicate how the incentives and the reserved capacity depends on the probability that the new components are not received.
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