Production and remanufacturing strategies in a closed-loop supply chain: A two-period newsvendor problem

Marc Reimann*, Gernot Lechner

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

5 Citations (Scopus)

Abstract

Effective and efficient closed-loop supply chain processes can constitute a significant competitive edge for companies. However, the integration of forward and reverse processes poses some challenges both on the supply side— e.g., availability of remanufacturable products—and on the demand side, e.g., cannibalization between new and remanufactured products. In this paper a two-period newsvendor-type approach is presented. The model is used to characterize the optimal production and remanufacturing policies. The main emphasis is on studying supply side interactions, in particular, the link between production and sales of new products and the resulting subsequent supply of used products. Further, the issue of storing excess production is addressed. The relationship between inventory and remanufacturing decisions is quantified.

Original languageEnglish
Title of host publicationHandbook of Newsvendor Problems
Subtitle of host publicationModels, Extensions and Applications
EditorsTsan-Ming Choi
PublisherSpringer
Pages219-247
Number of pages29
ISBN (Electronic)978-1-4614-3600-3
ISBN (Print)978-1-4614-3599-0
DOIs
Publication statusPublished - 2012

Publication series

NameInternational Series in Operations Research and Management Science
Volume176
ISSN (Print)0884-8289

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