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http://dx.doi.org/10.11627/jkise.2017.40.4.029

Strategic Pricing Framework for Closed Loop Supply Chain with Remanufacturing Process using Nonlinear Fuzzy Function  

Kim, Jinbae (School of Industrial Engineering, Kumoh National Institute of Technology)
Kim, Taesung (School of Industrial Engineering, Kumoh National Institute of Technology)
Lee, Hyunsoo (School of Industrial Engineering, Kumoh National Institute of Technology)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.40, no.4, 2017 , pp. 29-37 More about this Journal
Abstract
This papers focuses on remanufacturing processes in a closed loop supply chain. The remanufacturing processes is considered as one of the effective strategies for enterprises' sustainability. For this reason, a lot of companies have attempted to apply remanufacturing related methods to their manufacturing processes. While many research studies focused on the return rate for remanufacturing parts as a control parameter, the relationship with demand certainties has been studied less comparatively. This paper considers a closed loop supply chain environment with remanufacturing processes, where highly fluctuating demands are embedded. While other research studies capture uncertainties using probability theories, highly fluctuating demands are modeled using a fuzzy logic based ambiguity based modeling framework. The previous studies on the remanufacturing have been limited in solving the actual supply chain management situation and issues by analyzing the various situations and variables constituting the supply chain model in a linear relationship. In order to overcome these limitations, this papers considers that the relationship between price and demand is nonlinear. In order to interpret the relationship between demand and price, a new price elasticity of demand is modeled using a fuzzy based nonlinear function and analyzed. This papers contributes to setup and to provide an effective price strategy reflecting highly demand uncertainties in the closed loop supply chain management with remanufacturing processes. Also, this papers present various procedures and analytical methods for constructing accurate parameter and membership functions that deal with extended uncertainty through fuzzy logic system based modeling rather than existing probability distribution based uncertainty modeling.
Keywords
Remanufacturing; Closed loop Supply Chain Management; Ambiguous Type Uncertainty; Fuzzy Nonlinear Control; Price Elasticity of Demand;
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Times Cited By KSCI : 2  (Citation Analysis)
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