An investigation of inventory in closed loop supply chain systems for multiple periods

Abstract

In todays supply chain product flow does not end with reaching the customer Many products and parts after accomplishing the original task lead to a second and third or even fourth life of their function Hence product and parts may generate revenues several times in industries rather than once Capture of the value of the product and parts requires broadening of the supply chain perspective to include a new process known as Reverse Logistics RL RL becomes a very important aspect for industries in capture of the value of used products and parts To manage the mix of return products and parts use of return information from a customer maintenance of the green image imposed by legislation finds difficult for remanufacturing industry Traditionally the focus of industries is on improving the forward supply chain for their products Now a days economic incentives legal pressure and shorter life span of products have led more and more industries getting engaged in product recovery activities associated with regaining materials in a backward loop The important field of product recovery is remanufacture which refers to bringing used products back to a condition wherein the recovered products and parts are just as good as new In many industries Original Equipment Manufacturers OEMs are very active in remanufacturing activity By bringing remanufactured products back to markets the OEMs establish direct links between forward and reverse logistics activities thus building up and operating a Closed Loop Supply Chain CLSC One of the most challenging issues in CLSC is the inventory management of returned products and parts which disassembled at various sites The flow of return parts takes different forms of dimensions such as some parts being sent to repair site some parts being sent for recycling and some other items disposed off newline