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Heuristics for the economic lot scheduling problem with returns

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  • Teunter, Ruud
  • Tang, Ou
  • Kaparis, Konstantinos

Abstract

We study the multi-item economic lot scheduling problem (ELSP) with two sources of production: manufacturing of new items and remanufacturing of returned items. Manufacturing and remanufacturing operations are performed on the same production line. Tang and Teunter [2006. Economic lot scheduling problem with returns. Production and Operations Management 15 (4), 488-497.] recently presented a complex algorithm for this problem that determines the optimal solution within the class of policies with a common cycle time and a single (re)manufacturing lot for each item in each cycle. This algorithm is rather complex and time consuming, combining a large MIP formulation with a search procedure, and may therefore not always be practical. In this paper, we deal with this type of problems and propose simple heuristics that are very fast and can be applied in a spreadsheet package. A large numerical study shows that the heuristics provide close to optimal solutions.

Suggested Citation

  • Teunter, Ruud & Tang, Ou & Kaparis, Konstantinos, 2009. "Heuristics for the economic lot scheduling problem with returns," International Journal of Production Economics, Elsevier, vol. 118(1), pages 323-330, March.
    • Handle: RePEc:eee:proeco:v:118:y:2009:i:1:p:323-330
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    References listed on IDEAS

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    1. Salah E. Elmaghraby, 1978. "The Economic Lot Scheduling Problem (ELSP): Review and Extensions," Management Science, INFORMS, vol. 24(6), pages 587-598, February.
    2. Teunter, Ruud H. & van der Laan, Erwin & Inderfurth, Karl, 2000. "How to set the holding cost rates in average cost inventory models with reverse logistics?," Omega, Elsevier, vol. 28(4), pages 409-415, August.
    3. Samuel G. Davis, 1990. "Scheduling Economic Lot Size Production Runs," Management Science, INFORMS, vol. 36(8), pages 985-998, August.
    4. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
    5. Earl E. Bomberger, 1966. "A Dynamic Programming Approach to a Lot Size Scheduling Problem," Management Science, INFORMS, vol. 12(11), pages 778-784, July.
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    Cited by:

    1. Wang, Gang & Gunasekaran, Angappa, 2017. "Operations scheduling in reverse supply chains: Identical demand and delivery deadlines," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 375-381.
    2. Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    3. Vladimir Polotski & Jean-Pierre Kenne & Ali Gharbi, 2017. "Set-up and production planning in hybrid manufacturing–remanufacturing systems with large returns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(13), pages 3766-3787, July.
    4. Tsiliyannis, Christos Aristeides, 2018. "Markov chain modeling and forecasting of product returns in remanufacturing based on stock mean-age," European Journal of Operational Research, Elsevier, vol. 271(2), pages 474-489.
    5. S. Malolan & M. Mathirajan & M. K. Tiwari, 2020. "A methodology for determining the optimal reverse flow capacities and the breakeven period for a multi products-component remanufacturing problem of an OEM," Operations Management Research, Springer, vol. 13(3), pages 233-248, December.
    6. Sifaleras, Angelo & Konstantaras, Ioannis & Mladenović, Nenad, 2015. "Variable neighborhood search for the economic lot sizing problem with product returns and recovery," International Journal of Production Economics, Elsevier, vol. 160(C), pages 133-143.
    7. Tsiliyannis, Christos Aristeides, 2015. "Sustainability by cyclic manufacturing: Assessment of resource preservation under uncertain growth and returns," Resources, Conservation & Recycling, Elsevier, vol. 103(C), pages 155-170.
    8. Holmbom, Martin & Segerstedt, Anders, 2014. "Economic Order Quantities in production: From Harris to Economic Lot Scheduling Problems," International Journal of Production Economics, Elsevier, vol. 155(C), pages 82-90.
    9. Jing, Fuying & Chao, Xiangrui, 2022. "Forecast horizons for a two-echelon dynamic lot-sizing problem," Omega, Elsevier, vol. 110(C).
    10. Andreas Goerler & Stefan Voß, 2016. "Dynamic lot-sizing with rework of defective items and minimum lot-size constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(8), pages 2284-2297, April.
    11. Gribkovskaia, Irina V. & Kovalev, Sergey & Werner, Frank, 2010. "Batching for work and rework processes on dedicated facilities to minimize the makespan," Omega, Elsevier, vol. 38(6), pages 522-527, December.
    12. Polotski, Vladimir & Kenne, Jean-Pierre & Gharbi, Ali, 2017. "Production and setup policy optimization for hybrid manufacturing–remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 322-333.

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