The stream of the literature review is divided into two lines.

The first line is reverse logistics in

manufacturing. The traditional supply chain system only considers the forward logistics of
manufacturing new products. Forward logistics is the process of converting raw materials or
components to final products and distributing them to end consumers. However, with the trend of
laws and the environment, the production system must face up to the importance of reverse
logistics. In addition, the literature also uses the production rate or the recovery time to
emphasize the difference in the quality of the recycled materials. This study will continue to
explore the differences between the recycled materials and the original materials in the reverse
logistics. Reverse logistics is opposite to forward logistics and begins with the recycling of used
products by end consumers. Manufacturers manage recycled end-of-life (EOL) products and
make the most effective use of all parts of the EOL products by determining the recycling-,
remanufacturing-, and repair-related decisions (Govindan et al., 2015). De Brito et al. (2005)
divide reverse logistics into six categories: product recalls (due to product defects), B2B
commercial returns (due to short product life cycles), B2C commercial returns (excess supply or
quality issues), manufacturing returns (due to waste produced in the manufacturing process),
warranty and service returns, and end-of-life returns. This study focuses on manufacturing
returns. Pigosso et al. (2010) raised the viewpoint of sustainability that both the complexity and
the EOL of a product shall be combined with eco-design in manufacturing/remanufacturing
processes. Recent studies on the manufacturer’s decision-making process usually focused on
EOL returns. For instance, Polotski et al. (2017) considered the differences in production rates
with manufacturing and remanufacturing. Zikopoulos (2017) considered quality discrepancy in
returns. Furthermore, recent studies concerned with manufacturing waste did not elaborate the
manufacturer’s decision-making process, e.g. see (Paraskevas et al., 2013; Ma, 2016).
The recycled materials in the most previous literature are the products formed by recycling
the products used by customers and processed through disassembly. Unlike the most literature
discussed, in this paper, the concept of recycle is residual waste liquid from raw material
manufacturing products, and upstream manufacturers hold patented technology capable of
processing waste liquid and converting it into recycled materials, which can be used to produce
lower quality products. In the metal, chemical, and construction industries, the reverse logistics
system of raw materials is expensive or a rare resource. Manufacturers will be willing to deal
with the waste generated during the production process, because the waste still contains many
precious elements, which are directly discarded or disposed of. Selling costs will lose their due
value. Paraskevas et al. (2013) explained that when manufacturers recover copper metal for
alloys, because the alloy is difficult to decompose, it needs to be diluted by adding a solution,
which causes the quality of the copper alloy to decrease during the recovery process. Ma (2016)
pointed out that the solid waste remaining after steelmaking contains a high proportion of zinc,
which is an obstacle to steelmaking recycling. High content of zinc metal shortens the life of
blast furnace and reduces the productivity of blast furnace. By separating zinc from solid waste,
Recycling waste. Chiu et al. (2008) pointed out that the by-product converter stone formed by
steelmaking can also be used for pavement. Compared with the construction industry, four types
of materials: recycled hot mix asphalt, recycled rubber asphalt, recycled glass asphalt and
traditional asphalt are used to pave the road The results show that the use of recycled hot mix
asphalt reduces the ecological burden by 23%. Tsuo et al. (1998) showed that there are many
similar processes between crystalline-silicon solar photovoltaic (PV) and integrated-circuit (IC),
and a lot of water resources and chemistry are needed in the manufacturing process. However,
the PV process is not as strict in terms of water resources and chemical materials as the IC
process. Scholars have proposed many methods to apply to the IC and PV processes, which can
make the PV processed use renewable resources and achieve economic benefits and reduce
environmental impact.
Although the use of recycled materials for production is very common in the industry, the
relevant literature in the field of industrial engineering discusses more about the extended topic
of recycling products from customers, and less is the discussion of recycled materials. Banasik et
al. (2017) discussed the issue of agricultural materials reverse logistics on renewable materials.
Due to the timeliness of agricultural products, the final product cannot usually be recycled, but
the compost materials used to produce agricultural products can be recycled and reused. In this
article, agricultural products such as mushrooms are used. For discussion, the composting
material of mushrooms can be scrubbed and removed to form a regenerated material, and the
regenerated material can be used to grow mushrooms. Scholars have stated at the end of the
article that reuse and recycling compost can be separated. Increase economic and environmental
indicators by 11% and 28%.
This article introduces the characteristics of the industry model of this research model, so that
readers can more easily imagine the issues that this research model wants to solve in the industry
when reading Chapter 3 Model Construction. Lin Boting (2004) introduced that chemical
mechanical polishing (CMP) is a technology that currently provides a comprehensive flattening
of very large integrated circuit (VLSI) and very large integrated circuit (ULSI) processes. The
circular area has increased, but the circuits have become smaller and smaller, resulting in a high
concentration of internal components. Traditional planarization methods have been unable to
meet industry needs. IBM introduced CMP technology to the semiconductor process in 1983 and
was widely used in microprocessors.
Cai Jinhuang (2013) pointed out that the importance of wafer planarization is mainly to
facilitate subsequent processes and improve process yields, such as easy yellow light exposure,
prevention of thinning of metal wire sidewalls, and reduction of metal wire etching costs. The
chemical mechanical polishing process includes wafer carriers, polishing pads, polishing
platforms and other equipment. The main process is to use a wafer carrier to hold the wafer, and
place the wafer facing the polishing pad, and apply relative rotation speed during the polishing
process. At this time, the required polishing liquid and ultrapure water are added, but the
polishing liquid contains The particles (alumina, silicon dioxide, etc.) can gradually flatten the
protruding dielectric layer (oxide layer) in the wafer, so that the wafer tends to be flattened. This
phenomenon is called a chemical mechanical polishing process.
In addition to the application of chemical mechanical polishing in the wafer process, because
planarization is very important in industrial processes, chemical mechanical polishing is also
widely used in the panel industry. Cai Kuncheng (2013) pointed out that there are many similar
processes between the panel and the semiconductor, the difference is that the panel uses thin film
transistors on glass instead of silicon wafers. Panels have also evolved with technology.
Consumers purchase mainly “thin and light” LCD panels. In order to meet customer preferences,
the thickness of glass substrates used to make panels has gradually decreased.
Due many chemical materials and water resources are used in the chemical mechanical
polishing process, grinding waste liquid is also generated. Lin Tingwei (2012) pointed out that
the grinding waste liquid contains grinding particles, wafer grinding fines and a large amount of
ultrapure water in the process. The nanometer silicon dioxide suspended in a large amount of the
waste liquid is filtered and effectively applied to the grinding slurry again, which can make the
wastewater treatment more economical. The industry's process for waste liquid treatment is also
very tricky, and must comply with government process wastewater recycling specifications. Lee
et al. (2014) pointed out that the chemical mechanical polishing waste liquid treatment needs to
undergo quite complicated procedures such as pH neutralization, liquid precipitation, and toxic
separation, and the polishing liquid recovered in the previous industry can no longer be used in
the wafer production process, but This research has successfully developed a system for
recycling abrasive liquids (APWR), which can recover abrasives (powder particles) and water
resources (ultra-pure water) and reuse them in the IC process.
At present, the industry has considerable technology to effectively recover the waste
materials remaining after the production of raw materials, because the waste materials still
contain quite high-value elements. If such resources are disposed of as waste products, they
cannot achieve their due value, so the industry will The liquid is recovered and filtered, and the
high-value ground particles are recycled, and the lower-value production is made in the form of
recycled materials, which reduces the production cost and the impact of waste on the
environment; however, the quality of recycled materials is pointed out in the above literature.
None of them can be of the same quality as the raw material production. Therefore, in the model
building section, this study assumes that recycled materials can only be used for low-level
production to meet low-level market demand.
The second stream of the relevant literature is about the inventory and ordering in supply
chain systems. Khouja (1999) and Qin et al. (2011) pointed out that the extended newsboy model
includes utility model newsboys, multiple order decisions, newsboys with different ordering
models, etc. The application level is quite extensive. This section will list the extended models of
newsboys. Regarding the newsboy model with multiple orders, Ma et al. (2012) discusses the
decision to have two ordering opportunities in a newsboy model. The best profit is expressed in
the form of loss a verse utility. Consider the update of information between the second orders
and discuss the impact of demand forecast quality on retailer's decision. The size of the penalty
factor, the correctness of the information, and whether or not the order is allowed to cancel will
all affect the ordering decision of the first period; the penalty factor includes the costs of overage
ordering and underage ordering. When the penalty factor is larger, the retailer tends to The more
orders are placed in the first period; the more accurate the demand forecast, the smaller the
number of orders in the first period; if the order allows cancellation in the model, the retailer will
order more in the first period. Linh and Hong (2009) discussed the existence of a retailer and a
wholesaler in the model. The wholesaler is the leader of Stackelberg competition. It is divided
into a two-stage newsboy model with single order opportunity and two order opportunities,
which are different. The retail price and wholesale price of the second period will be lower than
the first period, and a revenue sharing contract will be added to coordinate the retailer and
supplier, and it is found that the revenue sharing ratio will grow linearly with the wholesale
price, although this result It will cause the wholesaler to lose part of the revenue, but through the
contract revenue sharing ratio, it can obtain compensation that exceeds the loss, creating a win-
win result. Weng (2004) discussed that a manufacturer and buyer in the supply chain system
faced uncertain demand. The difference is that the buyer will consider whether the profit of the
product is greater than the related cost of the second purchase. If the profit is positive, choose to
buy more; if the profit is negative, choose to accept the cost of stock-out. At the end of the
article, it is pointed out that when the optimal order quantity of the system is different from the
optimal order quantity of the buyer, the coordination mechanism can narrow the gap between the
optimal order quantity of the buyer and the manufacturer and increase the profits of both sides of
the supply chain system.
 Regarding the newsboy model of different ordering models, Li and Liu (2008) discussed the
newsboy model of the supply chain system with capacity constraints. The retailer first
determines its first order quantity, while the manufacturer determines its reserved capacity, based
on the retailer's decision size, and prove that the cost per unit of the reserved capacity of the
manufacturer will be an important factor affecting the profit of the supply chain system. Wang
and Chen (2015) added an option contract to discuss the relationship between the price of the
newsboy model and the order quantity. There will be three models for retailers to sell products.
(1) Retailers purchase directly from suppliers; (2) Buy product options (option), after the demand
is announced, decide how many product options to fulfill; (3) mixed ordering, including (1) and
(2) two models; scholars point out that whether the demand is uncertain or high, the risk Mixed
orders can maximize retailer profits. However, if only the two models (1) and (2) are compared,
when the demand risk is low, the retailer tends to buy directly from the supplier; however, when
the demand risk is high Due to high uncertainty, retailers tend to purchase product options. Wang
and Chen (2017) also discussed the newsboy model of the fresh supply chain. The supply chain
members include a supplier and a retailer. The supplier is the leader of Stackelberg competition,
and the retailer is a follower. The difference from the previous one is that Fresh products and
general products will lose their quantity during transportation, increase the circulation loss factor,
and explain that the retailer's profit in the supply chain is more sensitive to the retail price than
the manufacturer; and as the circulation loss rises, the This leads to an increase in the pricing of
options; instead, an increase in circulation losses will cause a decrease in the performance price.
Other ordering models, such as Liu et al. (2014), discuss two types of ordering contracts in the
supply chain system, and discuss the parameters of the option contract and advance purchase
discount (APD) on the profit of suppliers and manufacturers.
In the past, the problem of reverse logistics in the newsboy model was less mentioned by
scholars than other extended models. It is a relatively new issue, and most of them focus on the
recycling of products from customers. Chuang et al. (2014) discusses the role of recycling in the
supply chain in the newsboy model, which can maximize the profit of the decentralized supply
chain. They are manufacturer recycling, retailer recycling, third-party recycling, and discussing
recycling. The impact of the collection cost structure on the overall supply chain can be divided
into economies of scale and diseconomies of scale. When the recovery cost structure of the
supply chain members in the model is similar, in the case of economies of scale, the retailer's
recycling is the best choice for the manufacturer; in the case of diseconomies of scale, the
manufacturer's recycling is the best for the manufacturer. Good. Wang et al. (2017) discussed the
impact of customer recycling numbers on pricing and order quantities in single- or multi-period
newsboy models, and included discussions on option contracts and wholesale price contracts.
Scholars pointed out that when customer recycling is based on sales price recycling Regardless
of the single-period or multi-period newsboy model, retailers will reduce prices, increase the
number of products purchased directly from manufacturers, reduce the number of options to
purchase products, and maximize their profits; when customers recycle according to the
proportion of sales volume Recycling, in the case of a single period, the retailer will increase the
price and reduce the number of direct purchase products and product options; however, in the
case of multiple periods, the customer's recovery amount is affected by the order cost and option
cost. Rowe et al. (2017) explored that manufacturers faced two suppliers with two kinds of
materials, namely raw materials and recycled materials, and analyzed the price range of the
manufacturers. Channel purchasing strategy.
 For the newsboy model with two random variables, Chen Peiyi (2010) discussed a model in
which a downstream assembly plant faces a market with fixed demand. There are two suppliers
providing components, but the yield rate of the two suppliers is a random variable. I do n’t know
the number of good components they receive, and they may face the risk of being out of stock or
over-ordering. This model is used to solve the problem that the assembly plant needs to decide
on the two suppliers when the yield of the two suppliers is unknown. The number of orders
ordered by scholars indicates that when there is a trade-off between yield and price, the assembly
plant will order a larger number of suppliers with expensive but high yields. Yang et al. (2007)
proposed a newsboy problem that considers supplier selection. Different suppliers have different
random yields and corresponding unit order costs. Therefore, retailers must face demand and
supply. Uncertainty, scholars use Newton search method to find the best order quantity and
maximum profit. Ma et al. (2017) proposed a virtual channel-integrated dual-channel newsboy
model in which random demand comes from two channels, physical store demand and online
demand. Scholars also consider buying goods with a certain return rate, and divide them into two
models to discuss (1) Products returned by online customers cannot be used to serve physical
customers; (2) Products returned by online customers can be used to serve physical customers,
and the impact of parameter changes in the two models on profit is discussed.
First of all, this study makes a simple explanation and review of the past scholars' discussion
on the impact of reverse logistics activities on environmental and economic benefits, and
explores the impact of different recycling methods in reverse logistics. The quality of the
materials is close, but it takes a long time and the cost is high; on the contrary, grinding and
recycling will make the quality of the recovered material lower than the original material, but it
is easier to control its cost.
The recycled materials mentioned in Section 2.2 are different from the recycled materials
discussed in the previous literature. The recycled materials referred to in this research are the
materials formed after the waste is filtered and used again in low-level production. The grinding
and recycling liquid used in the industry is to process the waste liquid left by the wafer through
the chemical mechanical polishing process. The particles are extracted through the filtering
process to form recycled materials. Because the waste liquid contains many particles and can be
reused repeatedly. Utilization, and the industry currently has considerable technology to recover
grinding waste liquid.
Finally, using the newsboy model and its extended model of the past literature, and
categorizing it into four forms for literature review, the newsboy model with multiple orders,
different ordering models, reverse logistics forms, and double random variables was found. The
newsboy model for the use of recycled materials is rarer than previous literature. Therefore, this
study adds a recycling material procurement mechanism to the newsboy model. It is assumed
that after the raw materials are produced, the waste liquid must be processed by upstream
manufacturers. There are two markets in the market, high-order demand and low-order demand.
Construct different ordering strategies in Chapter 3, including (1) "Wholesale" and "Reserved
Capacity" ordering models, and (2) "Raw materials" and "Mixed materials" (original materials
and recycled materials). Material procurement mechanism, comparing the pros and cons of
different strategies under the expectation of maximizing profits. In the following chapters, the
effects of various cost parameters on the profit and order quantity under different ordering
strategies are explored, and the management implications are used to provide a reference for
manufacturers to make management decisions.
Based on the gaps of the two streams of literature, this paper combines sourcing strategies with
demand uncertainties, ordering options and sustainability issues and investigates an ordering
option of a manufacturer that has to make a decision about how they order, raw or recycling
materials and profit uncertainties in the presence of a demand. It contributes to the research
streams on sustainable operations, newsboy models with demand and profit uncertainties.

Most literature in the field of industrial engineering assumes that there is no difference between
the quality of new products and the quality of remanufacturing, but other scholars use different
forms to express the difference in quality of raw materials and recycled materials in
mathematical models. Polotski et al. (2017) believes that there is a slight difference in quality
between new product manufacturing and recycled materials, so scholars assume that the raw
material manufacturing rate is greater than the recycled product manufacturing rate to distinguish
the difference, and discuss the existence of raw material manufacturing and recycled materials in
the system. Manufacture two modes, how to find the time point of the best switching mode, and
minimize its production cost, inventory cost and out-of-stock cost. Zikopoulos (2017) discusses
the high and low quality of the recycled materials in batches, and uses the recycling time to
emphasize the difference in the quality of the recycled materials.

and investigates a sourcing decision of a manufacturer that has to make a decision about how
much capacity to reserve from a recycling company considering demand, recycling quantity and
price uncertainties in the presence of a spot market. It contributes to the research streams on
sustainable operations (see e.g. Jaehn, 2016), newsvendor models with yield and price
uncertainties and circular economy. Table 1 summarizes the related literature and shows the
research gap.