Abstract
This study developed a model for a CLSC inventory system which consisted of a supplier, a manufacturer and a retailer. We applied single remanufacturing cycle and multiple manufacturing cycle, (1,P), policy and performed a comparison to the previous study. We conducted an investigation of an imperfect manufacturing process whose defective items were being reworked. Other considerations were quality dependent return rate and waste disposal activity, for any returned items that did not exceed the acceptable quality level. Some parameters including demand, proportion of defect, waste and refurbished item were assumed deterministic and constant. We proposed a solution procedure and presented a numerical example to illustrate the application of the model. The results showed that (1,P) policy allowed higher profit for the system than (R,1) policy presented in the previous study.
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