A Modified Reverse Supply Chain with Remanufacturing for Sustainable Product Cycle

This paper deals with a new model, in which the stationary demand for a product can be fulfilled by remanufactured products along with newly procured product leading to minimum consumption of virgin raw materials. The remanufactured products are assumed to be as good as new ones and the returned items from the customers can be remanufactured at a fixed rate. The model helps in maintaining the goodwill of the customers by not allowing frequent stock outs by providing safety stock. A model is proposed and analyzed depending on the relationship between different parameters. An interpretive modelling based approach has been employed to model the reverse logistics variables typically found in reverse supply chains. A methodology is used for the calculation of optimum level for the newly manufactured items and the optimum level of the returned items for remanufacturing simultaneously. The major objective is to minimize the waste and gain the competitive advantage of cost of conversion. Moreover the company can sustain in the same line of business for a longer period of time. Keywords Product recovery, remanufacturing, reverse supply chain, sustainable product