Integrated Inventory Control For A Single Product With Refurbishment Option

With the rapid development of global market economy and the exhaustion of non-renewable resources, Recycling and reusing of resources have been taken more and more attention. Under the dual drives of government promulgated laws and economic benefits, some enterprises have gradually involved in the reverse logistics activities with the characteristics of remanufacturing, refurbishing and reselling. For manufacturers, reverse logistics activities is not a separate part to the whole logistics. It is inseparable to the general forward logistics. Decision makers of enterprises need not only to control the inventory, but also the used products recycling and new products selling to make the enterprises get the maximum profit.In this paper, we make a manufacturer who takes part in reverse logistics activities with the style of refurbishing as the research object. In order to minimize the total cost and maximize the total profit of manufacturer from inventory control, used product recycling and new product pricing, we adopt the integrated decision-making method to research the integrated inventory control problem of the manufacturer. The main content of the paper is as follows:(1) Find a lot of related literatures at home and abroad. Analysis on the reverse logistics inventory control problem with deterministic and uncertain conditions.(2) Under the condition of deterministic demand, a single product control and recycle pricing model which aims at minimizing the total cost of the closed-loop logistics system is proposed. We design GA and PSO algorithm to solve the model. And do experiments with two scales and analysis the results of the experiments. At the same time, we carry on the comparative analysis between the two algorithms.(3)Under the condition of uncertainty demand, we make the total revenue of the manufacturer as the goal, and propose a model of new product with difference of new-product and a model of new product without difference of new-product in terms of inventory control, product recycling and new-product pricing respectively. Design the solving algorithm of the models. To these two models, we carry on a comparative analysis by experiments. For the front model,we study the parameters'influence to it and obtain some basic properties of the model, and we propose some suggestions to the decision-makers who involve in the reverse logistics activities.