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A Manufacturing–Remanufacturing System with Cannibalization and Market Expansion Effects
| Content Provider | Scilit |
|---|---|
| Author | Ishigaki, Aya Yamada, Tetsuo Gupta, Surendra M. |
| Copyright Year | 2019 |
| Description | The design of a closed-loop supply chain in the context of recycling or reusing promotes social responsibility and supports competitive abilities by making it possible for companies to offer sustainable products and services. However, to maintain a closed-loop supply chain, it is important to secure and control returned products (Gupta, 2013; Gupta and Ilgin, 2018; Ilgin and Gupta, 2010; Ilgin and Gupta, 2012; Kurilova-Palisaitiene and Sundin, 2014; Pochampally et al., 2009). That is, manufacturers need to plan production while understanding not only customer demand for newly manufactured and remanufactured products, but also the characteristics of returned products. Korugan and Gupta (1998) propose a two-stage inventory system and design an inventory system that uses an open-type queuing network model. Minner (2001) assumes that demand and returns are stationary and follow a normal distribution with a known mean and standard deviation. Mitra (2009, 2012) suggests a decision model for economic order quantity based on the assumption that 228the demand and returned product quantities follow a normal distribution. When remanufacturing products, there are two methods to follow: either a newly manufactured product is produced by reusing and recycling parts, or a remanufactured product is produced by replacing degraded or outdated parts. The latter is sold as a remanufactured product at a lower price than the newly manufactured product. Therefore, a cannibalization effect may occur in which the demand for newly manufactured products decreases. That is, consumers who would have originally purchased the newly manufactured products may instead purchase remanufactured products at a lower price. This section presents a manufacturing–remanufacturing system to decide a production plan and inventory control policy in consideration of the quantity of reusable products affected by past demand and the cannibalization effect. Book Name: Responsible Manufacturing |
| Related Links | https://content.taylorfrancis.com/books/download?dac=C2017-0-62127-3&isbn=9781351239141&doi=10.1201/9781351239141-10&format=pdf |
| Ending Page | 240 |
| Page Count | 14 |
| Starting Page | 227 |
| DOI | 10.1201/9781351239141-10 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2019-02-25 |
| Access Restriction | Open |
| Subject Keyword | Book Name: Responsible Manufacturing Industrial Engineering Social Responsibility Production Plan Newly Manufactured Remanufactured Product Remanufacturing System |
| Content Type | Text |
| Resource Type | Chapter |
