Fuzzy inventory model for new and refurbished deteriorating items with cannibalisation in green supply chain

Abstract

Most green supply chain models focus on manufacturing and remanufacturing, but do not consider the refurbishing activities. Refurbished products are those that are slightly damaged or have some technical glitch and are quickly repairable. In this study, we research on electronic industry that utilises reverse logistics to collect used products and refurbish them. These products are then sold in the market at a reduced price. Cannibalisation effect of sale of refurbished products on the new product sales is taken into account. A crisp integrated model is developed for manufacturing and refurbishing cycle assuming demand, deterioration, collection and cannibalisation parameters are precisely known with the objective is to minimise total cost. However, in the real world, these parameters are seldom known accurately. To account for this, the model is further enhanced by considering various parameters as imprecise in nature. These parameters are represented as triangular fuzzy numbers and signed distance method is used to defuzzify the cost function. The contribution of this study is multifold. The study highlights the importance of green supply chain in electronic industry and establishes a comprehensive integrated model in green supply chain. Computational simulations and sensitivity analyses are carried out to offer managerial insight.

KEYWORDS:

• Green supply chain
• refurbishing
• cannibalisation
• deterioration
• green manufacturing
• fuzzy model
• signed distance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Smita Rani

Smita Rani is a research scholar from AKTU University, Lucknow, India. She is pursuing her research on “Developing Inventory Model for Deteriorating Items In Green Supply Chain”. She has done M.Tech in Computer Science and M.Sc. in Mathematics. Her area of interest is inventory modelling, supply chain and fuzzy models. She has published various research in international journals in this area.

Rashid Ali

Dr. Rashid Ali is Professor (Maths) and Head, Department Of Applied Sciences, Krishna Engineering College, Mohan nagar, Ghaziabad, India. He is Ph.D., M.Phil., M.Sc. He completed his Ph.D from Aligarh Muslim University in 1999. He has a teaching experience of 20+ years and research experience of 11+ years. In this period, he has published his papers in various national and international journals. He has also published two books on Engineering Mathematics.

Anchal Agarwal

Anchal Agarwal is a PhD in Applied Mathematics from Banasthali University, Rajasthan, India. She is currently working as a lecturer in Amity University, Gurgaon, India. Her area of interest is inventory modeling and optimization. She has published various research in international journals in this area.