Environmental responsibility plays a significant role in the firm’s agendas nowadays. In this paper, we address the environmental operations of reverse logistics. Here we developed an integrated supply chain model with coordinated production and remanufacturing due to time-dependent rates. To study the problem we consider the demand to be satisfied with newly manufactured (produced) and the remanufactured products, so there is no difference between manufactured and remanufactured items. The shortages are allowed and excess demand is backlogged as well. The returned items are collected from the end user to be remanufactured. Optimal expression is obtained for the acceptable returned quantity, maximum inventory level, production and remanufacturing scheduling period, and the total average cost. Illustrative examples, which explain the application of the theoretical results as well as their numerical verifications, are given. The sensitivity of these solutions to change in underling parameter values is also discussed. 1. Introduction Environmental issues are gaining reasonable attention among society, worldwide. Consumer demand for clean manufacturing and recycling is increasing. Consumers expect to trade in an old product when they buy a new one. Hence, for the past few decades the reverse flow of products from consumers to upstream businesses has received much interest. Due to the governmental regulations and consumer concerns regarding these environmental issues, an increasing number of companies have focused on reduction efforts in the amount of waste stream, diversion of the discarded products, and disposition of the retired products properly whereas reverse logistics is the process of retrieving the product from the end consumer for the purposes of proper disposal. To facilitate the reverse flow of used products from consumers to manufacturers in an efficient manner, the most appropriate approach is to create a reverse supply chain network. Wherein reverse logistics can take place through the original forward channel, through a separate reverse channel, or through combinations of the forward and the reverse channel. Generally, companies focus on setting up a reverse supply chain either because of environmental regulations or to reduce their operating cost by remanufactured products or components. For companies that utilise a reverse supply chain deals with handling and reprocess of repairable used products withdrawn from production and consumption process. Such a reuse is, for example, recycling or repair of spare parts. It has an advantage from
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