Decision Model for Remanufacturing Reverse Supply Chain with Random Collection Quantity and Capacity Limitation

Abstract

Abstract: A remanufacturing reverse supply chain composed of one manufacturer and two collectors is addressed in this paper. It is assumed that the collection quantity is a random linear function of collection price and the facility capacities of the collectors or manufacturer are limited. We consider two cases: the collectors rent facilities or the manufacturer rents facilities. For such a supply chain, under Stackelberg game, we analyze the optimal collection prices for the collectors, the optimal buyback prices for the manufacturer, and the optimal facility capacities rented. Results show that the system is more profitable if the manufacturer rents facilities than the collectors rent facilities. This can be interpreted by the substitution effects which can reduce risks.

Key words: reverse supply chain, end-of-life product collection, remanufacturing

Sun Hao1， Da Qingli2. Decision Model for Remanufacturing Reverse Supply Chain with Random Collection Quantity and Capacity Limitation[J]. Industrial Engineering Journal , 2011, 14(5): 42-46.

References

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