Optimal operation for green supply chain considering demand information, collection incentive and quality of recycled parts  

Oleh:

Kusukawa, Etsuko

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-8.
Topik: Green supply chain; demand information; distribution-free approach; collection incentive; quality; game theory
Fulltext: 1007.pdf (469.96KB)

Isi artikel

This study proposes an optimal production policy for a green supply chain model (GSCM) with material flows from collection of used products to reuse of recycled parts in production of products. In GSCM, a retailer pays an incentive for collection of used products from customers and delivers them to a manufacturer with an order quantity of the products required considering the product demand uncertainty. The manufacturer remanufactures products using recyclable parts with acceptable quality levels and covers a part of the retailer’s incentive from the recycled parts. Here, two scenarios for the product demand are assumed as (i) the distribution of product demand is known (ii) the product demand has unknown distribution with known mean and variance. Under each situation, two types of optimal decisions for product quantity, collection incentive of used products and lower limit of quality level for recycling in GSCM are proposed. One is under a decentralized GSCM(DGSCM) whose objective is to maximize the expected profit of each member. The other is under an integrated GSCM(IGSCM) whose objective is to maximize the expected profit of the whole SC. The analysis numerically compares the results of optimal decisions under DGSCM with those under IGSCM as to available distribution information of product demand. Also, the effect of the quality of the recyclable parts on the optimal decisions and the expected profits are shown. Moreover, as supply chain coordination, the effects of three profit sharing approaches on each members’ profit are investigated under IGSCM : (I) Adoption of profit ratios between members, (II) Adoption of Nash Bargaining solution, (III) Adoption of the combination of (I) and (II).

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