3163. Optimal Supply Chain Management Strategies for Remanufacturing Under Uncertainty: A Portfolio-Theoretic and Risk-Constrained Approach
Invited abstract in session WC-39: Sustainable Supply Chains II, stream Sustainable & Resilient Systems and Infrastructures.
Wednesday, 12:30-14:00Room: Newlyn LG.01
Authors (first author is the speaker)
| 1. | Jingrong Bai
|
| University of Bristol | |
| 2. | Ming Luo
|
| University of Bristol Business School |
Abstract
Remanufacturing plays a critical role in achieving circular economy goals, yet it is often challenged by significant uncertainties in core supply, quality, and process execution. This study investigates optimal supply chain management strategies for remanufacturing under such uncertainty, focusing on key risks in core availability, quality variability, and inventory fluctuations. We develop a risk-constrained optimization framework that captures the variability of total remanufacturing cost as a measure of operational uncertainty. A static decision-making model evaluates procurement, reprocessing, and holding cost components under a fully in-house remanufacturing scenario. Building on this, a portfolio-theoretic approach is introduced to assess hybrid strategies that combine in-house and third-party core collection. Analytical results show how the optimal sourcing mix can be derived to minimize expected cost subject to risk constraints, while also accounting for diversification effects when multiple third-party providers are involved. By quantifying the trade-off between cost efficiency and risk exposure, the model offers practical insights for manufacturers seeking to enhance the resilience and sustainability of their remanufacturing supply chains.
Keywords
- Supply Chain Management
- Decision Support Systems
- Manufacturing
Status: accepted
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