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Dismantle or remanufacture?

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  • Guo, Shanshan
  • Aydin, Goker
  • Souza, Gilvan C.

Abstract

In this paper we study a firm’s disposition decision for returned end-of-use products, which can either be remanufactured and sold, or dismantled into parts that can be reused. We formulate this problem as a multi-period stochastic dynamic program, and find the structure of the optimal policy, which consists of monotonic switching curves. Specifically, if it is optimal to remanufacture in a given period and for given inventory levels, then it is also optimal to remanufacture when the inventory of part(s) is higher or the inventory of remanufactured product is lower.

Suggested Citation

  • Guo, Shanshan & Aydin, Goker & Souza, Gilvan C., 2014. "Dismantle or remanufacture?," European Journal of Operational Research, Elsevier, vol. 233(3), pages 580-583.
    • Handle: RePEc:eee:ejores:v:233:y:2014:i:3:p:580-583
    DOI: 10.1016/j.ejor.2013.09.042
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    References listed on IDEAS

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    1. Inderfurth, K. & de Kok, A. G. & Flapper, S. D. P., 2001. "Product recovery in stochastic remanufacturing systems with multiple reuse options," European Journal of Operational Research, Elsevier, vol. 133(1), pages 130-152, August.
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    Cited by:

    1. Aditya Vedantam & Ananth Iyer, 2021. "Revenue‐Sharing Contracts Under Quality Uncertainty in Remanufacturing," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 2008-2026, July.
    2. Kai Meng & Xiaoming Qian & Peihuang Lou & Jiong Zhang, 2020. "Smart recovery decision-making of used industrial equipment for sustainable manufacturing: belt lifter case study," Journal of Intelligent Manufacturing, Springer, vol. 31(1), pages 183-197, January.
    3. Niknejad, A. & Petrovic, D., 2014. "Optimisation of integrated reverse logistics networks with different product recovery routes," European Journal of Operational Research, Elsevier, vol. 238(1), pages 143-154.
    4. Shuihua Han & Weina Ma & Ling Zhao & Xuelian Zhang & Ming K. Lim & Shuangyuan Yang & Stephen Leung, 2016. "A robust optimisation model for hybrid remanufacturing and manufacturing systems under uncertain return quality and market demand," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5056-5072, September.
    5. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    6. Steeneck, Daniel W. & Sarin, Subhash C., 2018. "Product design for leased products under remanufacturing," International Journal of Production Economics, Elsevier, vol. 202(C), pages 132-144.
    7. Mabel C. Chou & Chee-Khian Sim & Xue-Ming Yuan, 2020. "Policies for inventory models with product returns forecast from past demands and past sales," Annals of Operations Research, Springer, vol. 288(1), pages 137-180, May.
    8. Meng, Kai & Cao, Ying & Peng, Xianghui & Prybutok, Victor & Gupta, Varun, 2020. "Demand-dependent recovery decision-making of a batch of products for sustainability," International Journal of Production Economics, Elsevier, vol. 224(C).
    9. Kleber, Rainer & Quariguasi Frota Neto, João & Reimann, Marc, 2023. "The role of part failure rates asymmetry and spare part proprietariness on remanufacturing decision making," European Journal of Operational Research, Elsevier, vol. 310(1), pages 185-200.
    10. Meng, Kai & Lou, Peihuang & Peng, Xianghui & Prybutok, Victor, 2017. "Multi-objective optimization decision-making of quality dependent product recovery for sustainability," International Journal of Production Economics, Elsevier, vol. 188(C), pages 72-85.
    11. Yan, Wei & Xiong, Yu & Xiong, Zhongkai & Guo, Nian, 2015. "Bricks vs. clicks: Which is better for marketing remanufactured products?," European Journal of Operational Research, Elsevier, vol. 242(2), pages 434-444.
    12. Yongbo Li & Devika Kannan & P. C. Jha & Kiran Garg & Jyoti Darbari & Neha Agarwal, 2023. "Design of a multi echelon product recovery embeded reverse logistics network for multi products and multi periods," Annals of Operations Research, Springer, vol. 323(1), pages 131-152, April.

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