A multi-objective closed loop supply chain model for remanufacturable parts with Kanban pull system of inventory and milk run mode replenishment option

• Main Authors: Gobaco, Bryan O., Concepcion, Cher Marizka A., Catapang, Lord Joyce A., Joaquinlao, Jill Mabel T.
• Format: text
• Published: Animo Repository 2010
• Subjects: Business logistics; Waste minimization; Product life cycle; Remanufacturing; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/6510
• Institution: De La Salle University

This paper considers a closed loop supply chain with product recovery for remanufacturing. The operational characteristics of such a chain considering a kKanban inventory system with possible use of milk run replenishments is captured in a mathematical model which allows the capability to decide on inventory and replenishment policies that takes into account minimizing operational cost and unwanted environmental emissions. Life-cycle analysis (LCA) is employed to capture environmental emissions from activities within the chain. The dual objective nature of the model is handled using Pareto-optimization principle. Validation was done under which it was established that there is a trade-off in a company's operational cost and environmental consideration. The paper also tries to lay down characteristics of the supply chain that would make particular inventory and replenishment policies the better choice to adopt or use.