The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains
•Advance notice, lead times, random yield and correlation are considered.•The production variance could increase as the result of the advance notice scheme.•Longer remanufacturing lead times could reduce inventory variance.•Increasing the returns and the yields could result in lower performance. We...
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| Published in | European journal of operational research Vol. 246; no. 3; pp. 827 - 836 |
|---|---|
| Main Authors | , , |
| Format | Journal Article |
| Language | English |
| Published |
Amsterdam
Elsevier B.V
01.11.2015
Elsevier Sequoia S.A |
| Subjects | |
| Online Access | Get full text |
| ISSN | 0377-2217 1872-6860 |
| DOI | 10.1016/j.ejor.2015.05.036 |
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| Abstract | •Advance notice, lead times, random yield and correlation are considered.•The production variance could increase as the result of the advance notice scheme.•Longer remanufacturing lead times could reduce inventory variance.•Increasing the returns and the yields could result in lower performance.
We investigate the impact of advance notice of product returns on the performance of a decentralised closed loop supply chain. The market demands and the product returns are stochastic and are correlated with each other. The returned products are converted into “as-good-as-new” products and used, together with new products, to satisfy the market demand. The remanufacturing process takes time and is subject to a random yield. We investigate the benefit of the manufacturer obtaining advance notice of product returns from the remanufacturer. We demonstrate that lead times, random yields and the parameters describing the returns play a significant role in the benefit of the advance notice scheme. Our mathematical results offer insights into the benefits of lead time reduction and the adoption of information sharing schemes. |
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| AbstractList | We investigate the impact of advance notice of product returns on the performance of a decentralised closed loop supply chain. The market demands and the product returns are stochastic and are correlated with each other. The returned products are converted into "as-good-as-new" products and used, together with new products, to satisfy the market demand. The remanufacturing process takes time and is subject to a random yield. We investigate the benefit of the manufacturer obtaining advance notice of product returns from the remanufacturer. We demonstrate that lead times, random yields and the parameters describing the returns play a significant role in the benefit of the advance notice scheme. Our mathematical results offer insights into the benefits of lead time reduction and the adoption of information sharing schemes. •Advance notice, lead times, random yield and correlation are considered.•The production variance could increase as the result of the advance notice scheme.•Longer remanufacturing lead times could reduce inventory variance.•Increasing the returns and the yields could result in lower performance. We investigate the impact of advance notice of product returns on the performance of a decentralised closed loop supply chain. The market demands and the product returns are stochastic and are correlated with each other. The returned products are converted into “as-good-as-new” products and used, together with new products, to satisfy the market demand. The remanufacturing process takes time and is subject to a random yield. We investigate the benefit of the manufacturer obtaining advance notice of product returns from the remanufacturer. We demonstrate that lead times, random yields and the parameters describing the returns play a significant role in the benefit of the advance notice scheme. Our mathematical results offer insights into the benefits of lead time reduction and the adoption of information sharing schemes. |
| Author | Disney, Stephen M. Hosoda, Takamichi Gavirneni, Srinagesh |
| Author_xml | – sequence: 1 givenname: Takamichi orcidid: 0000-0001-8241-3295 surname: Hosoda fullname: Hosoda, Takamichi email: hosoda@gsim.aoyama.ac.jp organization: Graduate School of International Management, Aoyama Gakuin University, 4-4-25 Shibuya, Shibuya-ku, Tokyo, Japan – sequence: 2 givenname: Stephen M. surname: Disney fullname: Disney, Stephen M. email: DisneySM@cardiff.ac.uk organization: Logistics System Dynamics Group, Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive, Cardiff, CF10 3EU, United Kingdom – sequence: 3 givenname: Srinagesh surname: Gavirneni fullname: Gavirneni, Srinagesh email: nagesh@cornell.edu organization: Samuel Curtis Johnson Graduate School of Management, Cornell University, 325 Sage Hall, Ithaca, NY, USA |
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| Keywords | Lead time Supply chain management Closed loop supply chain Information sharing Random yield |
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| Snippet | •Advance notice, lead times, random yield and correlation are considered.•The production variance could increase as the result of the advance notice... We investigate the impact of advance notice of product returns on the performance of a decentralised closed loop supply chain. The market demands and the... |
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| SubjectTerms | Closed loop supply chain Correlation analysis Information sharing Lead time Operations research Product returns Random yield Remanufacturing Studies Supply chain management |
| Title | The impact of information sharing, random yield, correlation, and lead times in closed loop supply chains |
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