Operations and inspection Cost minimization for a reverse supply chain
Reverse supply chain is a process dealing with the backward flows of used/damaged products or materials. Reverse supply chain includes activities such as collection, inspection, reprocess, disposal and redistribution. A well-organized reverse supply chain can provide important advantages such as economic and environmental ones. In this study, we propose a configuration in which quality assurance is a substantial operation to be fulfilled in the reverse chain so that to minimize the total costs of the reverse supply chain. A mathematical model is formulated for product return in reverse supply chain considering quality assurance. We consider a multilayer, multi-product for the model. Control charts with exponentially weighted moving average (EWMA) statistics (mean and variance) are used to jointly monitor the mean and variance of a process. An EWMA cost minimization model is presented to design the joint control scheme based on performance criteria. The main objective of the paper is minimizing the total costs of reverse supply chain with respect to inspection.
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