Coordinating the Acquisition Fee and Dispatching Decisions of Collection Centers in Reverse Supply Chains
Industrial Engineering Department, Eskişehir Technical University
Collection centers play an important role for sustainable development in closed-loop supply chains by managing the collection activities of end-of-life (EOL) products and presenting them back to the economy. In this study, we focus on a collection center, which collects EOL products that are composed of multiple components, disassembles the collected products, checks the quality of their components and sends the reusable parts to a remanufacturer at a certain price. The collection center needs to decide when to dispatch the collected products to the remanufacturer as well as the optimal acquisition fee in order to collect the right amount of EOL products from the end users and maximize its profit. We develop a dynamic programming model to maximize the long-run average profit of the collection center per unit time and analyze the optimal dispatching and acquisition fee decisions. We analyze quantity-based and time-based dispatching heuristics, which are widely used in practice, and compare their performances with the optimal dispatching decisions. We also compare static and dynamic acquisition fee models. We finally present a sensitivity analysis in order to analyze the effects of the parameters in our model. Computational results allow us to observe important managerial insights in this system regarding the optimal decisions depending on system parameters.
This is joint work with Dr. Onur Kaya.
Mehmet Alegoz is a Ph.D. candidate and research assistant in the Department of Industrial Engineering at Eskisehir Technical University. He continues his research under the supervisions of Dr. Onur Kaya and Dr. Pelin Bayindir. His research interests lie in the area of sustainable supply chains ranging from emission policies to coordination and competition. He mainly uses dynamic programming, stochastic programming and game theory to develop solution approaches for the problems in this area.
Mehmet is also an amateur piano player and he enjoys creating piano covers when he has free time.
Friday, October 12, 2018 at 4.00 pm in IE03