A production base-stock policy for recycling supply chain management in the presence of uncertainty
Journal
Computers and Industrial Engineering
Journal Volume
76
Journal Issue
1
Pages
193-203
Date Issued
2014
Author(s)
Abstract
This study focuses on solving master planning problems for a recycling supply chain with uncertain supply and demand. A recycling supply chain network includes collectors, disassemblers, remanufacturers, and redistributors working from the collection of returned goods to the distribution of recovered products to the market. The objective of this study is to maximize the total profit of the entire recycling supply chain. Considering the stochastic property of the recycling supply chain, this study institutes stocking and processing policies for each member of the recycling supply chain to better respond to unknown future demand. We propose a heuristic algorithm called stochastic recycling process planning algorithm (SRPPA) to address master planning problems in the recycling supply chain and its supply and demand uncertainties. The main SRPPA process consists of three phases. In the leader determination phase, SRPPA identifies the most important node as the leader of the recycling supply chain. In the candidate policy set generation phase, SRPPA defines the search range for the inventory policy and forms the candidate policy sets based on the characteristics of the leader. In the best policy set selection phase, SRPPA constructs the simulation process for each inventory policy candidate to identify the best policy set. A scenario analysis is then presented to show the effectiveness and efficiency of SRPPA. © 2014 Elsevier Ltd. All rights reserved.
Publisher
Elsevier Ltd
Type
journal article