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Using Dynamic Stability Strategy to Counteract Rapid Changing Demand Considering Deterioration and Partial Backordering Yu, J.C.P.; Lin, X. B.; Chen, J.M.
International Journal of Supply Chain Management Vol 13, No 4 (2024): International Journal of Supply Chain Management (IJSCM)
Publisher : ExcelingTech

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59160/ijscm.v13i4.6257

Abstract

In a real business world, the production plan must respond to quick changing market and keep production line stable. An optimal stepwise production strategy is derived with stable production rate for some period, and then changing to another stable production rate to response market change for the next period. The cost factors we considered in the model include the production setup cost, the production-variation cost, the carrying cost, the deteriorating cost, the backordering and the lost sale shortage cost. For demand that changes linearly or exponentially with time, an inventory model with partial backordering is developed. Finally, sensitivity analysis is carried out to investigate how changing parameters affect this system.
An Effective Three-Echelon Reverse Supply Chain Strategic Alliance under Cap-and-Trade Regulation Lin, X. B.; Yu, J. C. P.
International Journal of Supply Chain Management Vol 14, No 4 (2025): International Journal of Supply Chain Management (IJSCM)
Publisher : ExcelingTech

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59160/ijscm.v14i4.6339

Abstract

In recent years, the booming industry has led to the extensive development of petrochemical energy, coupled with extensive deforestation, resulting in more serious global warming. Climatic anomalies around the world have made it an imperative for enterprises to effectively limit carbon emissions to protect the environment.In the study, we incorporate carbon emission reduction with implementing corporate social responsibility into a three-echelon reverse supply chain for used products. Assumed that carbon emission depends on sustainability level and the returns (used products) quality is stochastic. The optimization recycling models for both decentralized and centralized systems are formulated and then compared to each other. The results show that the centralized system can achieve higher profits and has lower carbon emissions.This study contributes by: (i) developing closed-loop supply chain models with recycler-manufacturerretailer interactions for reused products; (ii) incorporating both cap-and-trade regulation and green technology investment as emission-reduction mechanisms; (iii) modeling demand as dependent on price and technology level under decentralized and centralized structures; and (iv) providing comparative insights on profits, emissions, and sensitivity, with directions for multi-agent extensions.A computing software Maple 18 has been developed for this purpose and is implemented to derive the optimum decision for for each player. Numerical examples and sensitivity analyses are given to illustrate the results.