A decomposition algorithm for robust lot sizing problem with remanufacturing option

In this paper, we propose a decomposition procedure for constructing robust optimal production plans for reverse inventory systems. Our method is motivated by the need of overcoming the excessive computational time requirements, as well as the inaccuracies caused by imprecise representations of problem parameters. The method is based on a min-max formulation that avoids the excessive conservatism of the dualization technique employed by Wei et al. (2011). We perform a computational study using our decomposition framework on several classes of computer generated test instances and we report our experience. Bienstock and Özbay (2008) computed optimal base stock levels for the traditional lot sizing problem when the production cost is linear and we extend this work here by considering return inventories and setup costs for production. We use the approach of Bertsimas and Sim (2004) to model the uncertainties in the input

A comparison of repaired, remanufactured and new compressors used in Western Australian small- and medium-sized enterprises in terms of global warming

Repaired compressors are compared with remanufactured and new compressors in terms of economic andenvironmental benefits. A detailed life cycle assessment has been carried out for compressors under threemanufacturing strategies: repaired, remanufactured and new equipment. The life cycle assessment of the globalwarming potential of repaired compressors varies from 4.38 to 119 kg carbon dioxide equivalent (CO2-e),depending on the type of components replaced. While greenhouse gas emissions from the remanufacturedcompressors (110 to 168 kg CO2-e) are relatively higher than those from the repaired ones (4.4 to 119 kg CO2-e), anew compressor has been found to produce a larger amount of greenhouse gas emissions (1,590 kg CO2-e)compared to both repaired and remanufactured compressors. Repairing failed compressors has been found to offerend users both dollar and carbon savings in contrast to remanufactured and new compressors. The research alsofound that extended lifetime is more important than the manufacturing processes in terms of greenhouse gasemissions. Since a remanufactured compressor offers a longer life than a repaired compressor, the replacement ofthe latter with the former can avoid 33% to 66% of the greenhouse gas emissions associated with a newcompressor production with a lifetime of 15 to 25 years

Swift trust and commitment: the missing links for humanitarian supply chain coordination?

Coordination among actors in a humanitarian relief supply chain decides whether a relief operation can be or successful or not. In humanitarian supply chains, due to the urgency and importance of the situation combined with scarce resources, actors have to coordinate and trust each other in order to achieve joint goals. This paper investigated empirically the role of swift trust as mediating variable for achieving supply chain coordination. Based on commitment-trust theory we explore enablers of swift-trust and how swift trust translates into coordination through commitment. Based on a path analytic model we test data from the National Disaster Management Authority of India. Our study is the first testing commitment-trust theory (CTT) in the humanitarian context, highlighting the importance of swift trust and commitment for much thought after coordination. Furthermore, the study shows that information sharing and behavioral uncertainty reduction act as enablers for swift trust. The study findings offer practical guidance and suggest that swift trust is a missing link for the success of humanitarian supply chains

The manufacturer's value chain as a service - the case of remanufacturing

Manufacturing enterprises globally have already largely adopted the product-service strategy into their operations. However, due to gradual commoditization of services, manufacturing enterprises will have to further extend this strategy. One possibility is for manufacturers to servitize, not only their final products, but also a part of their value chain, with the aim of increasing their long-term competitive advantage. In this article, the application of servitization to remanufacturing, as a set of operational and business competences and processes, is conceptualized. By offering remanufacturing as a service, manufacturers will create an additional revenue stream. The synergies created from integrating remanufacturing into an enterprise with a product-service system are scrutinized. The impact of offering remanufacturing as a service (servitizing) is then assessed from the perspective of the competitive advantage of both, the provider and the consumer of the service. Three main sets of implications are identified. The first is that the integration of remanufacturing into a product-service system could increase customer satisfaction through a larger service scope and higher service quality, while decreasing operational costs. Furthermore, it is shown that the higher the level of servitization, the stronger is the positive impact of remanufacturing. The second set of results shows that servitizing remanufacturing can substantially increase the competitive advantage of both the provider and the consumer. While the first two sets of results have industrially oriented implications, the third set constitutes a theoretical contribution through the proposal and conceptual validation of extension of the application of servitization theory. Finally, while the reasoning is of a conceptual nature, it is based on established theories and includes remanufacturing-related industrial cases as a basis for assessment

Paths to Innovation in Supply Chains: The Landscape of Future Research

This chapter presents a Strategic Research and Innovation Agenda for supply chain and it is the result of an intensive work jointly performed involving a wide network of stakeholders from discrete manufacturing, process industry and logistics sector to put forward a vision to strengthen European Supply Chains for the next decade. The work is based on matching visions from literature and from experts with several iterations between desk research and workshops, focus groups and interviews. The result is a detailed analysis of the supply chain strategies identified as most relevant for the next years and definition of the related research and innovation topics as future developments and steps for the full implementation of the strategies, thus proposing innovative and cutting-edge actions to be implemented based on technological development and organisational change