Title

Inventory control for returnable transport items in a closed-loop supply chain

Abstract

An inventory control model for returnable transport items (RTI) where the manager selects the optimal length for inspection, repair, and purchase cycles is described. Repaired and newly obtained RTI are used in combination to satisfy current production requirements. Uncertain returns are incorporated into the model by determining a satisfactory safety stock level to buffer the inventory of used and repairable containers. The minimum cost solution is obtained when inspection and repair runs begin simultaneously. Cycle times are a function of the expected return rate and repairable percentage, while variability in these random assumptions affects the required safety stock.

Department(s)

Marketing

Document Type

Article

DOI

https://doi.org/10.1016/j.tre.2015.12.010

Keywords

closed-loop supply chain, inventory control, return rate, returnable transport items, safety stock, stochastic returns

Publication Date

2016

Journal Title

Transportation Research Part E: Logistics and Transportation Review

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