An Inventory Model for a Closed Loop Supply Chain Considering Product Life Cycle in a Discrete Period

A Sasikumar¹, K Natarajan², M Ramasubramaniam³

¹Karpagam Institute of Technology, ²P.S.G College of Technology, ³Loyola Institute of Business Administration

Abstract

This paper focus on finding the optimum quantity of Product and Parts at various site in a Closed Loop supply chain (CLSC) system during the product life cycle. The experience from the reverse logistics industries show that three major return-recovery pairs namely commercial returns, End-of use returns and end of life returns are important. In this paper, a network consists of manufacturer, distributor, retailer, customers and for returns repair, collection site, repair site, disassembly site, recycling site and disposal site are considered and a model is developed for maximizing the profit in a CLSC system. The purpose of this model is to find the optimal inventory positioning at different stages of CLSC during different phases of lifecycle. The model is configured as mixed integer linear programming. A sensitivity analysis of results show that the decision variables involved in inventory positioning at various sites depend on phase of product life cycle.

Keywords

• Closed loop supply chain (CLSC), Product Life cycle (PLC), Mixed- Integer Linear Programming (MILP), Inventory

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Cite this Article as Follows

A Sasikumar, K Natarajan, M Ramasubramaniam. "An Inventory Model for a Closed Loop Supply Chain Considering Product Life Cycle in a Discrete Period" International Conference on Systems, Science, Control, Communication, Engineering and Technology (2016): 164-176. Print.