Abstract
We examine a reverse supply chain consisting of a collection site, where consumers return used products, and a remanufacturing facility. Some of the returned products are transported to the remanufacturing facility in order to be remanufactured and used to satisfy the stochastic demand for remanufactured products. The quality of returns is characterized by uncertainty, and therefore, before the procurement quantity determination, the remanufacturer has the alternative to inspect a sample drawn from the collected quantity in order to evaluate more accurately returns’ quality. Using general assumptions for returns quality and remanufactured products demand distributions, we formulate the expected profit function for both sampling and no-sampling cases and we examine numerically the economic effectiveness of sampling. A key characteristic of the current paper is that returns’ yield is expressed as the probability of a unit to be remanufacturable.
Chapter PDF
Similar content being viewed by others
References
Guide Jr., V.D.R., Van Wassenhove, L.N.: Managing product returns for remanufacturing. Production and Operations Management 10(2), 142–155 (2001)
Debo, L.G., Savaskan, R.C., Van Wassenhove, L.N.: Coordination in closed-loop supply chains. In: Dekker, R., Fleischmann, M., Interfurth, K., Van Wassenhove, L.N. (eds.) Quantitative Models for Closed Loop Supply Chains, pp. 295–311. Springer, Berlin (2004)
Guide Jr., V.D.R., Souza, G.C., Van Wassenhove, L.N., Blackburn, J.D.: Time value of commercial product returns. Management Science 52(8), 1200–1214 (2006)
Geyer, R., Neeraj, K., Wan Vassenhove, L.N.: Reverse logistics in an electronic company: the NEC-CI case. In: Flapper, S.D.P., Van Nunen, J.A.E.E., Wan Vassenhove, L.N. (eds.) Managing Closed-Loop Supply Chains, pp. 33–39. Springer, Berlin (2005)
Driesch, H.M., Van Oyen, Flapper, S.D.P.: Recovery of car engines: the Mercedes-Benz case. In: Flapper, S.D.P., Van Nunen, J.A.E.E., Wan Vassenhove, L.N. (eds.) Managing Closed-Loop Supply Chains, pp. 157–166. Springer, Berlin (2005)
Nenes, G., Panagiotidou, S., Zikopoulos, C.: Procurement and sampling decisions under stochastic returns yield in reverse supply chains. Working Paper (2009)
Ferrer, G.: Yield information and supplier responsiveness in remanufacturing operations. European Journal of Operational Research 149, 540–556 (2003)
Ferrer, G., Ketzenberg, M.E.: Value of information in remanufacturing complex products. IIE Transactions 36, 265–277 (2004)
Aras, N., Boyaci, T., Verter, V.: The effect of categorizing returned products in remanufacturing. IIE Transactions 36, 319–331 (2004)
Galbreth, M.R., Blackburn, J.D.: Optimal acquisition and sorting policies for remanufacturing. Production and Operations Management 15(3), 384–393 (2006)
Ketzenberg, M.E., Van der Laan, E., Teunter, R.H.: Value of information in closed loop supply chains. Production and Operations Management 15(3), 393–406 (2006)
Souza, E.A., Ketzenberg, M.E., Guide Jr., V.D.R.: Capacitated remanufacturing with service level constraints. Production and Operations Management 11(2), 231–248 (2002)
Tagaras, G., Zikopoulos, C.: Optimal location and value of timely sorting of used items in a remanufacturing supply chain with multiple collection sites. International Journal of Production Economics 115, 424–432 (2008)
Yano, C.A., Lee, H.L.: Lot sizing with random yields: A review. Operations Research 43(2), 311–334 (1995)
Lee, H.L., Rosenblatt, M.J.: Optimal inspection and ordering policies for products with imperfect quality. IIE Transactions 17(3), 284–289 (1985)
Ben-Daya, M., Noman, S.M.: Integrated inventory and inspection policies for stochastic demand. European Journal of Operational Research 185, 159–169 (2008)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 IFIP International Federation for Information Processing
About this paper
Cite this paper
Zikopoulos, C., Panagiotidou, S., Nenes, G. (2010). The Value of Sampling Inspection in a Single-Period Remanufacturing System with Stochastic Returns Yield. In: Vallespir, B., Alix, T. (eds) Advances in Production Management Systems. New Challenges, New Approaches. APMS 2009. IFIP Advances in Information and Communication Technology, vol 338. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-16358-6_17
Download citation
DOI: https://doi.org/10.1007/978-3-642-16358-6_17
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-16357-9
Online ISBN: 978-3-642-16358-6
eBook Packages: Computer ScienceComputer Science (R0)