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A model for a production-repair system under a time-varying demand process

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  • Omar, Mohd
  • Yeo, Ivan

Abstract

In this study, we consider a production system that satisfies a continuous time-varying demand for a finished product over a known and finite planning horizon by supplying either new products or repaired used products. Our model assumes that new products are fabricated from a single type of raw material procured from external suppliers, while used products are collected from the customers and then repaired to an 'as new' condition before being sold again. However, we assume that there is no further collection of used products during the period when they are being repaired or shipped. The problem is to determine a joint policy for raw materials procurement, new products production and used products repair such that the total relevant cost of the system is minimized. We propose a numerical solution procedure based on Microsoft Excel Solver's nonlinear mathematical programming function. Then, the procedure is illustrated with a numerical example.

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  • Omar, Mohd & Yeo, Ivan, 2009. "A model for a production-repair system under a time-varying demand process," International Journal of Production Economics, Elsevier, vol. 119(1), pages 17-23, May.
    • Handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:17-23
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    Cited by:

    1. Hsieh, Chung-Chi & Lathifah, Artya, 2022. "Ordering and waste reuse decisions in a make-to-order system under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1290-1303.
    2. Lakdere Benkherouf & Konstantina Skouri & Ioannis Konstantaras, 2016. "Optimal Control of Production, Remanufacturing and Refurbishing Activities in a Finite Planning Horizon Inventory System," Journal of Optimization Theory and Applications, Springer, vol. 168(2), pages 677-698, February.
    3. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "Optimal policy for an inventory system with power demand, backlogged shortages and production rate proportional to demand rate," International Journal of Production Economics, Elsevier, vol. 155(C), pages 163-171.
    4. Adel A. Alamri, 2023. "A Sustainable Closed-Loop Supply Chains Inventory Model Considering Optimal Number of Remanufacturing Times," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    5. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    6. Omar, Mohd & Yeo, Ivan, 2014. "A production–repair inventory model with time-varying demand and multiple setups," International Journal of Production Economics, Elsevier, vol. 155(C), pages 398-405.

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