A manufacturing–remanufacturing supply chain model with learning and forgetting in inspection under consignment stock agreement

Abstract

In this paper, we develop a closed-loop supply chain model to determine an appropriate strategy to be implemented in management practices. We consider a manufacturing–remanufacturing system to produce fresh product as well as recycled product maintaining equal quality. Inventories of the manufacturer and the retailer are managed by consignment stock policy. The return of used products is assumed to be random. The collected used products undergo an inspection process which is subject to learning and forgetting. A crucial inclusion of this paper gives a thought to greenhouse gas emission at the time of production. The proposed model is demonstrated with a numerical example followed by a sensitivity analysis. Our numerical study shows that about $35\%$ cost reduction is achievable against the no learning–forgetting case. A higher learning effect in manufacturing results in a higher acquisition of the system profit, which is a key factor for the managers to be taken into consideration. Utilization of discarded items has also an impressive impact on the system; about $6\%$ cost saving is experienced when $50\%$ of used materials is utilized.