Inventory models in a closed-loop supply chain with product returns and refurbishment

摘要

This study investigates a closed-loop supply chain, consisting of a manufacturer responsible for the first-market sales of a new item and a third-party refurbisher responsible for the second-market sales of a refurbished item. We then introduce two different supply chain models with different structures and revealed their distinct characteristics. Specifically, we reveal the effect of the supply chain structure on production lot size, refurbishing lot size, and sales price of a refurbished product, which then jointly affect the overall sales and profit performances. We also suggeste a guideline for the selection of a third-party refurbisher.