Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
11-2010
Journal or Book Title
Stochastic Models
Volume
26
Issue
4
First Page
549
Last Page
593
DOI
10.1080/15326349.2010.519665
Abstract
We consider a closed-loop supply chain where new products are produced to order and returned products are refurbished for reselling. The solution to aprice-setting problem enforces the heavy traffic condition, under which we address the production rate control problem for two types of cost functions. Wesolve a drift-control problem for an approximate system driven by a correlated two-dimensional Brownian motion. The solutions to this system are then used to obtain asymptotically optimal control policies. We also conduct a numerical study to explore the effects of different parameters on the optimal production rates and the resulting costs.
Copyright Owner
Taylor and Francis Inc.
Copyright Date
2010
Language
en
File Format
application/pdf
Recommended Citation
Ghosh, Arka P.; Ryan, Sarah M.; Wang, Lizhi; and Weerasinghe, Ananda, "Heavy Traffic Analysis of a Simple Closed-Loop Supply Chain" (2010). Industrial and Manufacturing Systems Engineering Publications. 30.
https://lib.dr.iastate.edu/imse_pubs/30
Included in
Applied Statistics Commons, Industrial Engineering Commons, Mathematics Commons, Systems Engineering Commons
Comments
The Version of Record of this manuscript has been published and is available in Stochastic Models 2010, http://www.tandfonline.com/10.1080/15326349.2010.519665. Posted with permission.