An Optimal Stochastic Model for Recycled Material Blending Manufacturing under Resources Recycle Fee and Subsidy Mechanisms

• Main Authors: Ssu-Han Lee, 李思漢
• Other Authors: 蔣明晃
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/09790669471395888599

碩士 === 國立臺灣大學 === 商學研究所 === 93 === In recent years, enterprises began to apply the concept of the reverse logistics to their business model to obtain competitiveness, such as lowering costs or improving the corporate image. More specifically, enterprises may add in recycled materials while manufacturing their products. By blending recycled materials with virgin materials, the firm needs to determine the best setting parameters for manufacture equipment when the blending proportion changes such that the intensity of mixed material to produce can be increased. But because the equipment settings are not allowed to be changed frequently and there exists high uncertainty of recycled material both in quantity and quality, the policymaker of the reverse logistics wants to search a manufacturing decision which can be less sensitive to the uncertainty. Thus, in this research, we will base on the concept of robust to determine the optimal blending proportion to manufacture between recycled material and virgin material, and also examine how the related parameters affect a firm’s manufacturing cost. First of all, a multi-period stochastic non-linear programming model is constructed based on past researches about recycled material blending problems and current fee and subsidy structure in Taiwan. We develop a stochastic programming method to solve it. Moreover, experimental design associated with scenario planning is used to analyze how blending proportion and total manufacturing cost are affected by different variations from product demand, availability of recycled materials, difference between recycled material and virgin material cost, and two different fee and subsidy structures. From the results of analysis, we find that product demand, availability of recycled materials, difference between recycled and virgin material cost, and fee and subsidy structures have significant impact on total manufacturing cost, while the spot market price of recycled materials could make a different impact of availability of recycled material and fee and subsidy structure on total manufacturing cost. Speaking of the blending proportion, the manufacturer will readjust the proportion as product availability of recycled materials, spot market price of recycled materials, difference between recycled and virgin material costs and fee and subsidy structure change respectively. We also observe that the fee and subsidy structure plays an important role in determining not only the best proportion mix but also manufacturing expense in each period. Thus, Recycle Management Fund must take all factors into consideration so as to make sure that the fee and subsidy structure could achieve the goal Government wants.