Consider a closed-loop supply chain subject to both finite product life cycle and limited component durability. The sales rate follows an isosceles trapezoid with T = 6 years, Q = 18000, and z = 2. The time interval between the sale of a product and its possible resale after being collected and remanufactured is 2 years. The maximum number of lives n is 2 for the product. Remanufactured and new items are perfect substitutes. Assume that Cman = 4, Creman = 1.5, Ccoll = 0.5, and Cdisp = 0.5. Calculate the average production cost difference ∆C (a) when the collection rate c is 1 and (b) when c is 0.5.

Consider a closed-loop supply chain subject to both finite product life cycle and limited component durability. The sales rate follows an isosceles trapezoid with T = 6 years, Q = 18000, and z = 2. The time interval between the sale of a product and its possible resale after being collected and remanufactured is 2 years. The maximum number of lives n is 2 for the product. Remanufactured and new items are perfect substitutes. Assume that Cman = 4, Creman = 1.5, Ccoll = 0.5, and Cdisp = 0.5. Calculate the average production cost difference ∆C (a) when the collection rate c is 1 and (b) when c is 0.5.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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