A closed-loop supply chain for deteriorating products under stochastic container return times |
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| Affiliation: | 1. Graduate School of Logistics, Incheon National University, Songdo-Dong, Yeonsu-Gu, Incheon 406-840, Korea;2. Carlo and Karin Giersch Endowed Chair “Business Management: Industrial Management”, Department of Law and Economics, Technische Universität Darmstadt, Hochschulstr. 1, 64289 Darmstadt, Germany;3. Advanced Logistics Research Team, Korea Railroad Research Institute, Railroad Museum road, Uiwang-Si, Gyeonnggi-Do 437-757, Korea;1. The School of Industrial and System Engineering, The University of Oklahoma, Norman, OK, USA;2. Department of Management, Kingston Business School, Kingston University, Kingston Upon Thames, UK;3. Institute of Transport and Logistics Studies, The University of Sydney Business School, Sydney, Australia;4. Department of Business and Economics, University of Southern Denmark, Odense 5230, Denmark;5. Department of Industrial Engineering and Operations Management, Koç University, Turkey;1. University of Salento, Department of Innovation Engineering, Campus Ecotekne, Via per Monteroni, 73100 Lecce, Italy;2. Auburn University, Department of Industrial and Systems Engineering, 3301 Shelby Engineering Center, Auburn, AL 36849, USA;3. Rochester Institute of Technology, Department of Industrial and Systems Engineering, 81 Lomb Memorial Drive, Rochester, NY 14623, USA;4. Rensselaer Polytechnic Institute, Department of Industrial and Systems Engineering, 110 8th Street, Troy, NY 12180, USA;5. Indian Institute of Management – Ahmedabad, Department of Production and Quantitative Methods, Vastrapur, Ahmedabad, India;1. Department of Industrial and Systems Engineering, Auburn University, Auburn, AL, United States;2. Department of Industrial Engineering and Management Systems, University of Central Florida, Orlando, FL, United States;3. Department of Production & Quantitative Methods, Indian Institute of Management Ahmedabad, Vastrapur, Ahmedabad, India;4. Department of Industrial and Systems Engineering, Rochester Institute of Technology, Rochester, NY, United States |
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| Abstract: | ![]()
This paper studies a two-stage supply chain where returnable transport items (RTIs) are used to ship finished products from the supplier to the buyer. Empty RTIs are collected at the buyer and returned to the supplier. The return time of RTIs is considered to be stochastic in this paper, and further finished products are assumed to deteriorate during potential delivery delays. First, the paper develops an analytical model of this supply chain, and then it discusses the properties of the model. Secondly, it presents the results of a simulation study in which the behaviour of the model is analysed. The results of our analysis indicate that the supply chain can influence both the risk of RTI stockouts at the supplier and the deterioration rate by changing the value of the return lot size of RTIs. Further, the results indicate that realising the optimal value for the RTI return lot size is especially important in case the mean return time of RTIs is short, while in case of a long RTI return lead time, an approximation of the optimal RTI return lot size is also acceptable. |
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| Keywords: | Returnable transport item Joint economic lot size Deterioration Deteriorating product Agricultural product Stochastic lead time RTI |
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