Optimal production planning for a multi-product closed loop system with uncertain demand and return
By Jianmai Shi, Guoqing Zhang, Jichang Sha. Computers & Operations Research, 2011
299 citations recorded by the source corpus.
We study the production planning problem for a multi-product closed loop system, in which the manufacturer has two channels for supplying products: producing brand-new products and remanufacturing returns into as-new ones. In the remanufacturing process, used products are bought back and remanufactured into as-new products which are sold together with the brand-new ones. The demands for all the products are uncertain, and their returns are uncertain and price-sensitive. The problem is to maximize the manufacturer's expected profit by jointly determining the production quantities of brand-new products, the quantities of remanufactured products and the acquisition prices of the used products, subject to a capacity constraint. A mathematical model is presented to formulate the problem and a Lagrangian relaxation based approach is developed to solve the problem. Numerical examples are presented to illustrate the model and test the solution approach. Computational results show that the proposed approach is highly promising for solving the problems. The sensitivity analysis is also conducted to generate managerial insights.
Subfields: Industrial and Manufacturing Engineering, Management Information Systems, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/6e791135905946385a857296951620713a2776a6
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In Industrial and Manufacturing Engineering
In Management Information Systems
In Strategy and Management
- Saman Hassanzadeh Amin
- Jie Wei
- Jinglong Zhao
- Guoqing Zhang
- Turan Paksoy
- Eren Özceylan
- Kannan Govindan
Citations in the corpus
- The closed-loop supply chain network with competition, distribution channel investment, and uncertainties (2013, background): “[32] studied the production planning problem for a multi-product closed loop system, in which the demands and their returns are uncertain and price-sensitive [33], but developed the model to include only the manufacturer’s decision-making problem.”
- An integrated model for closed-loop supply chain configuration and supplier selection: Multi-objective approach (2012, background): “Shi, Zhang, and Sha (2011) investigated a CLSC network which demand and return are uncertain.”
- Pricing and remanufacturing decisions in two competing supply chains (2015, methodology): “In the last few years, the remanufacturing supply chain has gained much attention, and quite a large number of researches have been done about it (Savaskan, Bhattacharya, and Van Wassenhove 2004; Debo, Totkay, and Van Wassenhove 2005; Wee and Chung 2009; Wei, Zhao, and Li 2012; Wei and Zhao 2013). F”
- A mixed integer programming model for a closed-loop supply-chain network (2013, background): “( 2011 ) studied a production-planning problem for a multi-product closed-loop system, in which the manufacturer has two channels for supplying products: producing brand-new products and remanufacturing returns into as-new ones.”
- A proposed mathematical model for closed-loop network configuration based on product life cycle (2012, background): “[36] studied the production planning problem for a multiproduct closed-loop system with uncertain demand and return.”