A comparison of inventory control policies for a joint manufacturing/Remanufacturing environment with remanufacturing yield loss

We consider a joint manufacturing / remanufacturing environment with remanufacturing yield loss. Demand and return follow independent stationary Poisson processes. Returns can be disposed off upon arrival to the system. Manufacturing and remanufacturing operations performed in the same facility at exponential rates. Yield information becomes available after remanufacturing. Demands that are not directly satisfied are lost. We investigate what inventories to consider when making production and disposal decisions, with the objective of maximizing the long-run average expected profit. Four different policies are compared that base disposal decisions on either the local (returns) inventory or the global inventory, and production decisions on either the local (serviceable) inventory or the global inventory. By modelling the system as a Markov process, expressions for the profit associated with each policy are derived. An extensive numerical study shows that it is always optimal to base disposal decisions on the local inventory and production decisions on the global inventory within the parameter sets considered. A sensitivity analysis reveals further insights.inventory control;product returns;remanufacturing;yield loss

Human resource strategy in disassembly for remanufacturing

Studies on product disassembly for remanufacturing using strategic perspective have been overlooked in current studies. This research uses a strategic approach to examine how product, process and organisational design affect disassembly strategies among different remanufacturers. Three companies that consist of two automotive and one jet engine remanufacturers have been selected as subjects. A case study approach using qualitative data has been adopted to examine how remanufacturers design their disassembly strategies. Our analysis revealed that the two major factors influencing disassembly strategies are product complexity and the stability of supply of cores

Determination of recovery effort for a probabilistic recovery system under various inventory control policies

In this study we investigate the desired level of recovery under various inventory control policies when the success of recovery is probabilistic. Recovery process is modelled as a single stage operation and recovery effort is represented by the expected time spent for it. The effect of increasing recovery effort on the success probability together with unit cost of the operation is included by assuming general forms of dependencies. The desired level of recovery is investigated under four inventory control policies for a wide range of system parameters. In this article, we present our computational results and their managerial implications.inventory control;probabilistic recovery

Overview and classification of coordination contracts within forward and reverse supply chains

Among coordination mechanisms, contracts are valuable tools used in both theory and practice to coordinate various supply chains. The focus of this paper is to present an overview of contracts and a classification of coordination contracts and contracting literature in the form of classification schemes. The two criteria used for contract classification, as resulted from contracting literature, are transfer payment contractual incentives and inventory risk sharing. The overview classification of the existing literature has as criteria the level of detail used in designing the coordination models with applicability on the forward and reverse supply chains.Coordination contracts; forward supply chain; reverse supply chain

A comparison of inventory control policies for a joint manufacturing/Remanufacturing environment with remanufacturing yield loss

We consider a joint manufacturing / remanufacturing environment with remanufacturing yield loss. Demand and return follow independent stationary Poisson processes. Returns can be disposed off upon arrival to the system. Manufacturing and remanufacturing operations performed in the same facility at exponential rates. Yield information becomes available after remanufacturing. Demands that are not directly satisfied are lost. We investigate what inventories to consider when making production and disposal decisions, with the objective of maximizing the long-run average expected profit. Four different policies are compared that base disposal decisions on either the local (returns) inventory or the global inventory, and production decisions on either the local (serviceable) inventory or the global inventory. By modelling the system as a Markov process, expressions for the profit associated with each policy are derived. An extensive numerical study shows that it is always optimal to base disposal decisions on the local inventory and production decisions on the global inventory within the parameter sets considered. A sensitivity analysis reveals further insights

Strategic operations framework for disassembly in remanufacturing

Studies on disassembly for remanufacturing using strategic perspectives have been overlooked in current studies. This research uses a strategic approach to examine how product, process and organisational designs affect disassembly strategies for different remanufacturer types. Three companies consisting of two automotive and one jet engine remanufacturer were selected as subjects. A case study approach using qualitative data was adopted to examine how remanufacturers design their disassembly strategies. The analysis revealed that the two major factors influencing disassembly strategies are product complexity and the stability of core supply. It also determined and grouped the factors that affect disassembly within remanufacturing

Determination of recovery effort for a probabilistic recovery system under various inventory control policies

In this study we investigate the desired level of recovery under various inventory control policies when the success of recovery is probabilistic. Recovery process is modelled as a single stage operation and recovery effort is represented by the expected time spent for it. The effect of increasing recovery effort on the success probability together with unit cost of the operation is included by assuming general forms of dependencies. The desired level of recovery is investigated under four inventory control policies for a wide range of system parameters. In this article, we present our computational results and their managerial implications

Eco-innovation and the circular economy in the automotive industry

Circular economy is emerging as a new sustainability paradigm. Similarly, eco-innovation is being recognized as one of the most important mechanisms that allow the transition from a linear to a circular economy in production processes, as there is a strong relationship between eco-innovation (eco-innovation of products, processes and management) and circular economy activities. However, the relationship between eco-innovation and circular economy is an issue that has been isolated and little analyzed in the academic literature. Therefore, this research fills this gap by exploring the interdependence between eco-innovation and circular economy. The research is conducted through an extensive literature review from where a research framework consisting of 2 measurement scales, 18 items and three hypotheses were developed. A self-administered questionnaire was distributed and 460 responses were obtained from companies in the automotive and auto parts industry in Mexico. The data obtained were analyzed through confirmatory factor analysis, descriptive statistics and Structural Equation Modelling. The results suggest that eco-innovation of products, process and management has a significant positive impact on the circular economy of companies in the automotive and auto parts industry. The findings of this research can inform managers in the automotive sector and policy makers when formulating and deploying environmentally sustainable strategies. This paper fills a research gap by expanding the limited body of knowledge that relates eco-innovation and circular economy and providing some evidence of their relationship. The research also allows the unique characteristics of eco-innovation and the circular economy to be understood within a particular context, growing in this manner the body of knowledge on this field