An Optimal Model for Recycled Material Blending Manufacturing by Considering Interrelationships among Demand,Recycled Material Quantity and Price
Date Issued
2008
Date
2008
Author(s)
Wu, Pin-Chun
Abstract
Abstractn recent years, many enterprises incorporate the concept of the reverse logistics to gain competitive strength, such as lowering costs. When enterprises emphasize the operation of the reverse logistics, they may use the recycled material to manufacture the products. And when the recycled material is used in manufacturing, manufacturers must blend recycled material with new material to increase the intensity of mixed material to conform quality requirements. Especially, as the blending proportion changed, the setting parameters of manufacture equipment need to be readjusted. Besides, there are interrelationships among product demand, recycled material quantity and price needed to be considered. Thus, in this research, we intend to discuss how the policymaker of the manufacturer decides an optimal blending proportion between recycled material and new material, and also examine how the parameters affect his blending proportion and related cost.nitially, a multi-period stochastic non-linear programming model is constructed and solved based on past researches of recycled material blending proportion, resources recycle fee and subsidy mechanisms, and the interrelationships among product demand, recycled material quantity and price. Moreover, experiment design is used to analyze how blending proportion and total cost are affected by different parameters including product demand, fee and subsidy structure, slope between product demand and recycled material quantity, and slope between recycled material quantity and price.rom the results of analysis, we find that product demand, slope between product demand and recycled material quantity, and slope between recycled material quantity and price have the great impact on the blending proportion, while product demand variation can have significant influence on slope between product demand and recycled material quantity and slope between recycled material quantity and price. In addition, product demand, fee and subsidy structure, and slope between recycled material quantity and price have the impact on total cost. From our results, it shows that the manufacturer may not use too high blending proportion of recycled material even if average price of recycled material is low since he needs to consider other factors to decide the best blending proportion. Also, the fee and subsidy structure plays the most important role in determining the total manufacturing cost. Thus, the government must take all factors into consideration to assure that the fee and subsidy structure could achieve what they want and the influence on total manufacturing cost.
Subjects
reverse logistics
recycled material
non-linear programming
Type
thesis
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