Performance Analysis Of Inventory System In A Closed-loop Supply Chain With Stochastic Returns
our paper addresses the influence of the remanufacturing lead-time . Uncertainty of returns and safety inventory on performance of inventory system in a closed-loop supply chain, where the performance is measured by three metrics including over-stocks, under-stocks and service level. We develop transfer function models by using control engineering methodology and particularly analyze the systems dynamic behavior. By this study, we have the following findings. Firstly, the effect of remanufacturing lead-time Lt greatly depends on the relationship with production lead-time L . In the case of Lr<iLp, the smaller the remanufacturing leadtime than the production lead-time, the worse the performance of inventory system; and in the case of Lr≥Lp. The influence of remanufacturing lead-time is very little and can be neglected. Secondly, decreasing the uncertainty of returns can reduce the over-stocks and under-stocks, and increase the service level. Controlling and reducing the returns uncertainty is beneficial for a firm to improve systems performance, which is especially important when the remanufacturing lead-time is much less than the production lead-time. Finally, the safety inventory plays an important role in reducing stockouts and improving service level in the situation of Lr<Lp. However, in the situation of Lr≥Lp, the safety inventory has a limited effect on the stockouts and service level. For the latter, setting a lower safety inventory is enough for a firm to keep a satisfactory service level even in the environment with high uncertainty of returns.
closed-loop supply chain inventory system product remanufacturing control engineering methodology
ZHAO Xiaomin LIN Yinghui ZHAO Xiaofang
School of Management, Shanghai University, Shanghai. P. R. China, 200444 University of Shanghai for Science and Technology, Shanghai, P. R. China, 200090
国际会议
2010 International Conference on Management(2010管理国际大会)
上海
英文
27-36
2010-07-24（万方平台首次上网日期，不代表论文的发表时间）