A centralized reverse channel structure with flexible manufacturing under the stock out situation

Keeping in view the concern about environmental protection, the study investigates effects of remanufacturing in an integrated production inventory model consisting of forward and reverse supply chain over infinite planning horizon. This article is developed for the deteriorating products with stock dependent demand under shortages. To make the model more realistic, flexibility of production system has been incorporated during forward manufacturing. We derive total cost function and using the results of calculus, optimum production policy is derived, which minimizes the total cost incurred. The results are discussed with a numerical example to illustrate the theory.