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This paper focuses on an integrated multi-stage green supply model where the remanufacturing and manufacturing are taken together. The return rate and remanufacturing rate are both stochastic in nature. The remanufacturing rate depends on the return rate. The defective products which are generated during the manufacturing as well as the remanufacturing process are immediately reworked. To reduce the ordering costs of the buyers, additional investments are taken into consideration. The manufacturer’s shipment cost depends on the number of deliveries. Close-loop formulae are obtained for the decision variables. Numerical study shows that an additional investment in ordering cost reduction helps the buyers to save more money as well as to reduce the integrated expected total cost of the entire green supply chain system. Sensitivity analyses for both of the models, with and without ordering cost reduction, are carried out.

The return and remanufacturing rates in a multi-stage green supply chain system with rework, variable shipping cost and ordering cost reduction