The more, the better, usually: An analytical investigation of the yield rate paradox in closed-loop supply chains
Closed loop supply chain
VAR demand
APIOBPCS
2019
.Conference presentation
50th Annual Conference of the Decision Sciences Institute, New Orleans, USA, November 23rd-25th
Abstract
We investigate a closed-loop make-to-stock system consisting of a remanufacturer and a manufacturer with VAR(1) demand and return processes. We show that the system-wide cost is convex in the triage yield rate, and larger mean returns can mitigate this yield paradox. Further cost reductions can be achieved with APIOBPCS model.