The more, the better, usually: An analytical investigation of the yield rate paradox in closed-loop supply chains


We investigate a closed-loop make-to-stock system consisting of a remanufacturer and a manufacturer with VAR(1) demand and return processes. We show that the system-wide cost is convex in the triage yield rate, and larger mean returns can mitigate this yield paradox. Further cost reductions can be achieved with APIOBPCS model.

50th Annual Conference of the Decision Sciences Institute, New Orleans, USA, November 23rd-25th.