A Mathematical Model for Optimizing the Closed Loop Supply Chain for multiple products with Varying Demand in a Product Life Cycle

Background: To interlink the Product Life cycle (PLC) curve of a multiple product with three different scenarios of demand and returns in a closed loop supply chain (CLSC) network. Objective: The purpose of this model is to find the optimal inventory positioning for three different scenario of demand for multiple product at different stages of CLSC during different stages of product lifecycle. For this a network consists of manufacturer, distributor, retailer, customers and for returns repair, collection site, repair site, disassembly site, recycling site and disposal site are considered and a model is developed for maximizing the profit in a CLSC system. Results: The results of the analysis show that the manufacturer can take appropriate decisions at all the stages of PLC by considering various product recovery options. Conclusion: To ensure the profitability of supply chain it is important for companies to focus on designing and implementing suitable policy interventions. As a recommendation, we propose to devise suitable buy-back or revenue-sharing contract arrangements with distributor which would incentivize them suitably to hold more inventories in the earlier stages of product introduction. Similar arrangements can be considered for implementation of the high demand products in the retailer stages as well.