The Value of Product Life-Cycle for Deteriorating Items in a Closed Loop Under the Reverse Logistics Operations

Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 236)


Owing to its strategic implications, reverse logistics has received much attention in recent years. Growing green concerns and advancement of reverse logistics concepts make it all the more relevant who can be achieved through the End-of-Life (EoL) treatment. In the proposed model, we develop a production inventory model with the reverse flow of the material. Here we determined the value of product life cycle with EoL scenario where the reverse logistics operations deal with the collection, sorting, cleaning, dissembling, and remanufacturing of the buyback products. The purpose of this paper is to develop an effective and efficient management of product remanufacturing. As a result, in this article, we establish a mathematical formulation of the model to determine the optimal payment period and replenishment cycle. Illustrative examples, which explain the application of the theoretical results as well as their numerical verifications, are also given. Finally, the sensitivity analysis is reported.


Production Reverse operations Deterioration Short life cycle products Collection investment 


  1. 1.
    Alamri, A.A.: Theory and methodology on the global optimal solution to a general reverse logistics inventory model for deteriorating items and time-varying rates. Comput. Ind. Eng 60, 236–247 (2010)Google Scholar
  2. 2.
    Bayındır, Z.P., Dekker, R., Porras, E.: Determination of recovery effort for a probabilistic recovery system under various inventory control policies. Omega 34, 571–584 (2006)CrossRefGoogle Scholar
  3. 3.
    Chung, C.-J., Wee, H.-M.: Short life-cycle deteriorating product remanufacturing in a green supply chain inventory control system. Int. J. Prod. Econ. 129, 195–203 (2011)CrossRefGoogle Scholar
  4. 4.
    Dekker, R., Fleischmann, M., Inderfurth, K.: Reverse logistics: quantitative models for closed-loop supply chains. Springer-Verlag, Heidelberg (2004)CrossRefGoogle Scholar
  5. 5.
    Dobos, I., Richter, K.: A production/recycling model with stationary demand and return rates. CEJOR 11(1), 35–46 (2003)MATHMathSciNetGoogle Scholar
  6. 6.
    Dobos, I., Richter, K.: An extended production/recycling model with stationary demand and return rates. Int. J. Prod. Econ. 90(3), 311–323 (2004)CrossRefGoogle Scholar
  7. 7.
    Dobos, I., Richter, K.: A production/recycling model with quality considerations. Int. J. Prod. Econ. 104(2), 571–579 (2006)CrossRefGoogle Scholar
  8. 8.
    Ishii, K., Eubanks, C.F., Marco, P.D.: Design for product retirement and material life-cycle. J. Mater. Des. 15(4), 225–233 (1994)CrossRefGoogle Scholar
  9. 9.
    King, A.M., Burgess, S.C., Ijomah, W., McMahon, C.A.: Reducing waste: repair, recondition, remanufacture or recycle? Sustain. Dev. 14(4), 257–267 (2006)CrossRefGoogle Scholar
  10. 10.
    Koh, S.G., Hwang, H., Sohn, K.I., Ko, C.S.: An optimal ordering and recovery policy for reusable items. Comput. Ind. Eng. 43, 59–73 (2002)CrossRefGoogle Scholar
  11. 11.
    Konstantaras, I., Skouri, K.: Lot sizing for a single product recovery system with variable setup numbers. Eur. J. Oper. Res. 203(2), 326–335 (2010)CrossRefMATHGoogle Scholar
  12. 12.
    Mabini, M.C., Pintelon, L.M., Gelders, L.F.: EOQ type formulations for controlling repairable inventories. Int. J. Prod. Econ. 28(1), 21–33 (1992)CrossRefGoogle Scholar
  13. 13.
    Nahmias, N., Rivera, H.: A deterministic model for a repairable item inventory system with a finite repair rate. Int. J. Prod. Res. 17(3), 215–221 (1979)CrossRefGoogle Scholar
  14. 14.
    El Saadany, A.M.A., Jaber, M.Y.: A production/remanufacturing inventory model with price and quality dependant return rate. Comput. Ind. Eng. 58(3), 352–362 (2010)CrossRefGoogle Scholar
  15. 15.
    Savaskan, R.C., Bhattacharya, S., van Wassenhove, L.N.: Closed-loop supply chain models with product remanufacturing. Manage. Sci. 50(2), 239–252 (2004)CrossRefMATHGoogle Scholar
  16. 16.
    Schrady, D.A.: A deterministic inventory model for repairable items. Naval Res Logistics Q. 14, 391–398 (1967)CrossRefGoogle Scholar
  17. 17.
    Singh, S.R., Prasher, L, Saxena, N.: A centralized reverse channel structure with flexible manufacturing under the stock out situation. Int. J. Ind. Eng. Comput.4, 559–570 (2013)Google Scholar
  18. 18.
    Singh, S.R,. Saxena N.: An optimal returned policy for a reverse logistics inventory model with backorders. Adv. Decis. Sci. 2012, 21 (2012). Article ID 386598Google Scholar
  19. 19.
    Srivastava, S.K.: Green supply-chain management: a state-of-the-art literature review. Int. J. Manage. Rev. 9(1), 53–80 (2007)CrossRefGoogle Scholar

Copyright information

© Springer India 2014

Authors and Affiliations

  1. 1.D. N. CollegeMeerutIndia

Personalised recommendations