An inventory model with dependent product demands and returns

Gudrun P. Kiesmüller; Erwin A. Van der Laan

doi:10.1016/S0925-5273(00)00080-3

An inventory model with dependent product demands and returns

Gudrun P. Kiesmüller
, Erwin A. Van der Laan

Eindhoven University of Technology
Erasmus University

Research output: Contribution to journal › Article › peer-review

121 Scopus citations

Abstract

In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.

Original language	English
Pages (from-to)	73-87
Number of pages	15
Journal	International Journal of Production Economics
Volume	72
Issue number	1
DOIs	https://doi.org/10.1016/S0925-5273(00)00080-3
State	Published - 30 Jun 2001
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Markov chain
Order-up-to policy
Remanufacturing
Reusable products

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10.1016/S0925-5273(00)00080-3

Cite this

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title = "An inventory model with dependent product demands and returns",

abstract = "In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.",

keywords = "Markov chain, Order-up-to policy, Remanufacturing, Reusable products",

author = "Kiesm{\"u}ller, \{Gudrun P.\} and \{Van der Laan\}, \{Erwin A.\}",

note = "Funding Information: The research presented in this paper makes up part of the research on reuse in the context of the TMR project REVersed LOGistics financially supported by the European Union (ERB 4061 PL 97-650) in which apart from Eindhoven University of Technology take part the Erasmus University Rotterdam (NL), the Aristoteles University of Thessaloniki (GR), INSEAD (F), the Otto-von-Guericke-Universitaet Magdeburg (D) and the University of Piraeus (GR). The second author greatly acknowledges the financial support provided by the NWO. ",

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doi = "10.1016/S0925-5273(00)00080-3",

language = "English",

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AU - Kiesmüller, Gudrun P.

AU - Van der Laan, Erwin A.

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PY - 2001/6/30

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N2 - In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.

AB - In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.

KW - Markov chain

KW - Order-up-to policy

KW - Remanufacturing

KW - Reusable products

UR - https://www.scopus.com/pages/publications/0035973362

U2 - 10.1016/S0925-5273(00)00080-3

DO - 10.1016/S0925-5273(00)00080-3

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SP - 73

EP - 87

JO - International Journal of Production Economics

JF - International Journal of Production Economics

IS - 1

ER -

An inventory model with dependent product demands and returns

Abstract

UN SDGs

Keywords

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