Inventory policy using the Multi-Echelon Closed-Loop Supply Chain in the Acquisition Market

Abstract

Abstract The Closed-Loop Supply Chain (CLSC) stands out due to a growing concern about environmental aspects, in addition to being capable of maximizing the value of resources throughout a product’s life cycle by reducing waste. Multi-echelon supply chain management has been widely recognized as a tool well capable of minimizing total inventory costs and promoting greater cooperation among supply chain members. Nonetheless, inventory policy management is still poorly explored in literature regarding the acquisition industry. Therefore, this paper explores an inventory policy through modelling a multi-echelon CLSC in the payment card industry aimed to lower inventory, freight, and shortage costs. Results reveal that there was a reduction in total costs without negatively affecting the minimum service level expected by the company under study, considering the cost of acquisition, freight, and shortages, in addition to the influence of inventory mix on its policy.

Keywords

• Closed-loop supply chain
• Multi-echelon
• Inventory policy
• Payment card industry
• Acquisition market