Operations and inspection Cost minimization for a reverse supply chain

  • Hamed Fazlollahtabar Department of Industrial Engineering, School of Engineering, Damghan University, Damghan, Iran
Keywords: Reverse supply chain; Quality inspection; Mathematical Model


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.


Acosta-Mejia, C.A., Pignatiello, J.J., Rao, B.V., (1999). A comparison of control charting procedures for monitoring process dispersion. IIE Transactions 31, 569–579.
Aras, N., Aksen, D., Tanugur, A. G., (2008). Locating collection centers for incentive dependent returnsunder a pick-up policy with capacitated vehicles. European Journal of Operational Research, 191, 1223–1240.
Beaulieu, M., Martin, R., Landry, S., (1999). Logistique à rebours: un portrait nord-amèricain. Logistique&
Cardoso, S. R., Paula. A.F.D, Póvoa, B. and Relvas, S. (2013). ” Design and planning of supply chains with integration of reverse logistics activities under demand uncertainty, ”European Journal of Operational Research, Vol 226, Iss 3,pp,436-451.
Chuang, C.H, Wang, C. X. and Zhao, Y. (2014). ” Closed-loop supply chain models for a high-tech product under alternativereverse channel and collection cost structures, ”International Journal of Production Economics,Vol156,pp,108-123.
Crowder, S.V., Hamilton, M.D., (1992). An EWMA for monitoring a process standard deviation. Journal of Quality Technology 24, 12–21.
Dekker, R., Van Der Laan, E. A., (1999). Gestion des stocks pour la fabrication et la refabricationsimultanées: synthèse de résultatsrécents. Logistique& Management, 7(2), 59–64.
Del Castillo, E., Cochran, J. K., (1996). Optimal short horizon distribution operations in reusable containersystems. Journal of the Operational Research Society, 47(1), 48–60.
Gan, F.F., (1995). Joint monitoring of process mean and variance using exponentially weighted moving average control charts. Technometrics 37, 446–453.
Govindan, K. and Nicoleta Popiuc, M. (2014). “Reverse supply chain coordination by revenue sharing contract: A case for the personal computers industry”, European Journal of Operational Research, Vol. 233, Iss.2, pp. 326-336.
Guide, V. D. R., Harrison, T. P., Van Wassenhove, L. N., (2003). The challenge of closedloop supplychains. Interfaces 33 (6), 3–6.
Huang, M., Song, M. Lee, L.H. and Ching, W.K. (2013). ” Analysis for strategy of closed-loop supply chain with dual recycling channel,”International Journal of Production Economics, Vol 144, Iss 2,pp,510-520.
Jayaraman, V., Guide, Jr. V. D. R., Srivastava, R., (1999). A closedloop logistics model forremanufacturing. Journal of the Operational Research Society, 50, 497–508.
Jayaraman, V., Patterson, R. A., Rolland, E., (2003). The design of reverse distribution networks: modelsand solution procedures. European Journal of Operational Research, 150(2), 128–149.
Krikke, H. R., (1998). Recovery strategies and reverse logistics network design. PhD thesis, University of Twente; Enschede, The Netherlands.
Krikke, H. R., Kooi, E. J., Schurr, P. C., (1999). Network design in reverse logistics: a quantitative model. In: Stahly P, editor. New trends in distribution logistics. Berlin, Germany: Springer, 45–62.
Lee, D., Dong, M., (2008). A heuristic approach to logistics network design for end-of- lease computerproducts recovery. Transportation Research Part E, 44, 455–474.
Lorenzen, T.J., Vance, L.C., (1986). The economic design of control charts: a unified approach. Technometrics 28, 3–10.
Management, 7(2), 5–14.
Morais, M.C., Pacheco, A., (2000). On the performance of combined EWMA schemes for l and r: A Markovian approach. Communications in Statistics, Part B-Simulation and Computation 29, 153–174.
Pati, R. K., Vrat, P., Kumar, P., (2008). A goal programming model for paper recycling system. TheInternational Journal of Management Science, Omega, 36(3), 405–417.
Rogers, D. S., Tibben-Lembke, R. S., (1998). Going backwards: reverse logistics trends and practices,Center for Logistics Management. University of Nevada, Reno, Reverse Logistics Executive Council.
Saccucci, M.S., Lucas, J.M., (1990). Average run lengths for exponentially weighted moving average control schemes using the Markov chain approach. Journal of Quality Technology 22, 154–162.
Salema, M. I. G., Barbosa-Povoa, A. P., Novais, A. Q., (2007). An optimization model for the design of acapacitated multi-product reverse logistics network with uncertainty. European Journal of OperationalResearch, 179, 1063-1077.
Soleimani, H. and Govindan, K. (2014). ” Reverse logistics network design and planning utilizing conditional value at risk,”European Journal of Operational Research, Vol 237, Iss2, pp, 487-497.
Stock, J., Speh, T., Shear, H., (2002). Many happy (product) returns. Harvard Business Review, 80 (7) , 16–17.
Thierry, M. C., Salomon, M., Van Nunen, J. A. E. E., Van Wassenhove, L. N., (1993). Strategic Production and Operations Management Issues in Product Recovery Management. Management Report Series No. 145, Erasmus Universiteit/Rotterdam School of Management.
Thierry, M., (1997). An analysis of the impact of product recovery management on manufacturingcompanies PhD thesis, Erasmus University, Rotterdam, The Netherlands.
How to Cite
Fazlollahtabar, H. (2018). Operations and inspection Cost minimization for a reverse supply chain. Operational Research in Engineering Sciences: Theory and Applications, 1(1), 91-107. Retrieved from http://www.oresta.org/index.php/oresta/article/view/8