IJAT Vol.11 No.4 pp. 563-571
doi: 10.20965/ijat.2017.p0563


Design of a Closed-Loop Supply Chain with Stochastic Product Returns

Aya Ishigaki*,†, Tetsuo Yamada**, and Surendra M. Gupta***

*Tokyo University of Science
2641 Yamazaki, Noda, Chiba 278-8510, Japan

Corresponding author;

**The University of Electro-Communications, Tokyo, Japan

***Northeastern University, Boston, USA

November 30, 2016
June 19, 2017
Online released:
June 29, 2017
July 5, 2017
remanufacturing, dynamic return data, recovery returns, end-of-life returns, recovery lead time

This research focuses on the relation between time variation and the behaviors of a closed-loop supply chain with stochastic product returns. In recent years, activities that reduce environmental impact, such as recycling and reusing materials, have been increasing. Designing a closed-loop supply chain for recycling or reuse operations will support social responsibility and competitive advantage. However, in order to establish supply chains for sustainability, it is necessary to consider not only environmental benefits but also economic efficiency. Moreover, both the quantity of demand and returns are indefinite in an actual closed-loop supply chain. In this study, we assume that the arrival interval of return inward follows a logarithmic normal distribution. Further, we design basic models with a manufacturing and remanufacturing process to understand the behavior of a closed-loop supply chain with stochastic product returns in a finite horizon and investigate the influence of different choices in management on the cost and environmental factors.

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Last updated on Sep. 20, 2017