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author:

Sun, H. (Sun, H..) [1] | Xia, X. (Xia, X..) [2] | Liu, B. (Liu, B..) [3]

Indexed by:

Scopus

Abstract:

In this paper, we propose inventory lot sizing policies for a closed-loop hybrid system over a finite product life cycle, which consists of three phases: introduction, maturity, and decline. Assuming the demand rate is a trapezoidal type function of time and return rate increases linearly over the finite production horizon. New and remanufactured products are perfect substitutes, which means that customer's demand can be satisfied by new products or remanufactured products. Different from the previous literature, this paper proposes inventory lot sizing models with variable replenishment intervals from the perspective of product life-cycle. Firstly, the inventory lot sizing models with variable replenishment intervals are established for each phase of the product life cycle. Secondly, the optimal policies and algorithms are designed for the given models. Finally, sensitivity analysis and comparative analysis are carried out through a numerical example. The results show that different inventory lot sizing policies should be adopted in different phases of the product life cycle: (1) the optimal manufacturing lot sizes increase while the replenishment intervals decreases over time in introduction phase, (2) the optimal manufacturing/remanufacturing lot sizes and the replenishment intervals are constant in maturity phase, (3) the optimal manufacturing/remanufacturing lot sizes decrease while the replenishment intervals increases over time in decline phase. The higher the return rate, the greater the advantage of the given model. Therefore, if return rate is relatively low, the firms may choose the static policy given by Hsueh (2011) with fixed replenishment intervals to simplify replenishment operations; if the return rate is relatively high, the firms may choose the given policies with variable replenishment intervals to reduce costs. © 2020 Elsevier Ltd

Keyword:

Closed-loop hybrid systems; Inventory; Product life cycle; Remanufacturing

Community:

  • [ 1 ] [Sun, H.]Business School, Shandong University, Weihai, China
  • [ 2 ] [Xia, X.]School of Economics and Management, Southeast University, Nanjing, China
  • [ 3 ] [Liu, B.]School of Economics and Management, Fuzhou University, Fuzhou, China

Reprint 's Address:

  • [Sun, H.]Business School, Shandong UniversityChina

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Source :

Computers and Industrial Engineering

ISSN: 0360-8352

Year: 2020

Volume: 142

5 . 4 3 1

JCR@2020

6 . 7 0 0

JCR@2023

ESI HC Threshold:149

JCR Journal Grade:1

CAS Journal Grade:2

Cited Count:

WoS CC Cited Count:

SCOPUS Cited Count:

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 0

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