ABSTRACT
Priority Setting In Closed-Loop Supply Chain With Periodic Review inventory system
Yun-Chiao Lin, Advisor: Professor Jack C.P.Su
Master of Industrial Engineering and Engineering Management,
National Tsing Hua University, Hsin-Chu City, Taiwan
Literature in closed loop supply chain often assumed that when new and recycle part are both available, the system should utilize recycle part first so that the system would not overly rely on the new part and defy the purpose of closed looped supply chain. The other assumption made by many closed loop supply chain literature using cycle time for assembly (CTA) as performance measurements is that when the assembly and disassembly task are both available, the assembly job is given higher priority . In this paper, we seek to investigate these assumptions.
We consider two closed-loop supply chain structures, Parallel and Mix. In the Parallel structure, the assembly and disassembly lines are separated while in Mix structure they are performed by the same production line. We study how the priority of inventory type(to use which type of inventory first) and job type(to process which type of job first) impact the mean and variance of the CTA. We find that assembly first indeed reduce the mean and variance of CTA. However, the story is quite different regarding the inventory type priority. In fact, using new part first not only significantly reduces the mean and variance of CTA but also consumes less new part. Because using new part first make the system more stable, consequently the system can achieve the same CTA with less new part inventory.
In addition, we compare the effectiveness of several alternatives to reduce CTA except priority setting including usage of common component, increase of disassembly process rate, and reduction of variation in disassembly time. The results show that setting the priority correctly is more effective than other alternatives.
Keywords: Design Chain, Priority Setting , Closed-Loop Supply Chain

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