Title: An integrated production, inventory and transportation decision in a whole green manufacturing supply chain

Authors: Jonrinaldi; David Z. Zhang

Addresses: Department of Industrial Engineering, Faculty of Engineering, Andalas University, Padang, 25163, Indonesia ' Exeter Manufacturing Enterprise Centre (XMEC), College of Engineering, Mathematics and Physical Sciences, University of Exeter, Harrison Building, North Park Road, Exeter, EX4 4QF, UK; State Key Laboratory on Mechanical Transmission, Chongqing University, Chongqing 400044, China

Abstract: This paper proposes model to integrate production, inventory and transportation decision in a whole green manufacturing supply chain. The integration includes reuse and remanufacturing of returned used products. The manufacturing supply chain consists of tier-2 and tier-1 suppliers, a manufacturer, distributors, retailers and a third party. The manufacturer dissembles used products into parts. Reusable parts are remanufactured and reused again in finished products. A mathematical model is developed to coordinate production, inventory and transportation decision which considers multiple products simultaneously with determination of number of transportation units needed to deliver the finished products subject to their own capacities. Solution methods for the model are proposed based on three types of coordination mechanisms, decentralised, semi-centralised and centralised decision processes. The model and solution methods are illustrated with two numerical examples and results and findings are discussed.

Keywords: production decisions; inventory decisions; transport decisions; green supply chains; manufacturing supply chains; green SCM; supply chain management; GSCM; reuse; remanufacturing; used products; disassembly; mathematical modelling.

DOI: 10.1504/IJISE.2017.083044

International Journal of Industrial and Systems Engineering, 2017 Vol.25 No.4, pp.520 - 544

Received: 22 Sep 2014
Accepted: 09 Apr 2015
Published online: 19 Mar 2017 *

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