Optimal Integrated Production and Inventory Cycles over an Entire Green Manufacturing Supply Chain with Coordination(Theory and Methodology,<Special English Issue>The 40th International Conference on Computers and Industrial Engineering (CIE 40))
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This paper proposes an integrated production and inventory cycle over an entire whole green manufacturing supply chain consisting of: multiple-raw materials suppliers (tier-2 suppliers), multiple parts suppliers (tier-i suppliers), a manufacturer, multiple distributors, multiple retailers and a third-party product collector. In the whole manufacturing supply chain, tier-2 suppliers supply raw materials to tier-i suppliers producing parts. Parts from tier-i suppliers are then supplied to a manufacturer who manufactures and assembles parts into finished products. Then, the finished products are delivered to distributors who distribute them to retailers. Since each player wishes to minimize total cost for itself and can supply multiple raw materials and parts, there is a need for coordination among players in the supply chain. The coordination used in this paper is for both centralized and decentralized decision processes. Owing to environmental and ecological consciousness and responsibility as a result of increasingly rigid environmental legislation and growing environmental concerns in recent years, this paper also considers some parts of used products being reused in new products. A mathematical model with multiple decision variables is developed. A numerical example is presented and results discussed.