1 research outputs found
Optimal Inventory Policy in a Closed Loop Supply Chain System with Multiple Periods
Purpose: This paper aims to model and optimize the closed loop supply chain for maximizing
the profit by considering the fixed order quantity inventory policy in various sites at multiple
periods.
Design/methodology/approach: In forward supply chain, a standard inventory policy can be
followed when the product moves from manufacturer, distributer, retailer and customer but the
inventory in the reverse supply chain of the product with the similar standard policy is very
difficult to manage. This model investigates the standard policy of fixed order quantity by
considering the three major types of return-recovery pair such as commercial returns, end- ofuse
returns, end –of- life returns and their inventory positioning at multiple periods. The model is
configured as mixed integer linear programming and solved by IBM ILOG CPLEX OPL studio.
Findings: To find the performance of the model a numerical example is considered for a
product with three Parts (A which of 2nos, B and C) for 12 multiple periods. The results of the
analysis show that the manufacturer can know how much should to be manufacture in multiple
periods based on Variations of the demand by adopting the FOQ inventory policy at different
sites considering its capacity constraints. In addition, it is important how much of parts should be
purchased from the supplier at the given 12 periods Originality/value: A sensitivity analysis is performed to validate the proposed model two parts.
First part of the analysis will focus on the inventory of product and parts and second part of
analysis focus on profit of the company. The analysis which provides some insights in to the
structure of the model.Peer Reviewe