Abstract:
In this paper, a guaranteed service model (GSM) is considered in a general supply chain with the releasing of the service time constraint. For this purpose, a bi-objective model is developed containing minimization of both service time and the holding cost of safety stock. Also, in addition to considering the return of items from inside of the chain, the returns from outside of the chain are considered to carry out remanufacturing, refurbishing, and repairing processes. The model is solved in a real-world case of the electronic product supply chain and the Pareto solution set is obtained to show the changes in the holding cost of safety stock based on the maximum time for the different services offered to customers.
Machine summary:
Optimizing the Safety Stock with Guaranteed Service Model in Reverse Logistics Considering Internal and External Returns Kazem Farahinejad a and Mohammad Reza Gholamian a,* School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran Abstract In this paper, a guaranteed service model (GSM) is considered in a general supply chain with the releasing of the service time constraint.
The model is solved in a real-world case of the electronic product supply chain and the Pareto solution set is obtained to show the changes in the holding cost of safety stock based on the maximum time for the different services offered to customers.
2. Review of the Literature As early works, Inderfurth (1991) provided a dynamic programming algorithm for distribution systems, Graves and Willems (2000) developed a guaranteed service model for general systems, and Minner (2000) considered the relaxation based on the assumption of similar service time for the downstream stages of distribution systems and proposed two different models.
The following notations are used to develop the proposed model: {مراجعه شود به فایل جدول الحاقی} RRi: Number of recycled items to stage i (View the image of this page) Based on the GSM, at each stage i ∈ I, an outbound guaranteed service time Si is imposed into downstream stages.
{مراجعه شود به فایل جدول الحاقی} Based on the Kimball control approach (1988), the internal returns can be considered as follows (Minner, 2000): = (View the image of this page) In the case of external returns, according to the quality level of the returned items, remanufacturing, refurbishing, and repairing items are determined.