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A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups

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  • Syed Ali, Sharifah Aishah
  • Doostmohammadi, Mahdi
  • Akartunalı, Kerem
  • van der Meer, Robert

Abstract

Due to the stricter government regulations on end-of-life product treatment and the increasing public awareness towards environmental issues, remanufacturing has been a significantly growing industry over the last decades, offering many potential business opportunities. In this paper, we investigate a crucial problem apparent in this industry, the remanufacturing lot-sizing problem with separate setups. We first discuss two reformulations of this problem, and remark an important property with regards to their equivalence. Then, we present a theoretical investigation of a related subproblem, where our analysis indicates that a number of flow cover inequalities are strong for this subproblem under some general conditions. We then investigate the computational effectiveness of the alternative methods discussed for the original problem. Detailed numerical results are insightful for the practitioner, indicating that in particular when the return variability increases or when the remanufacturing setup costs decrease relevant to manufacturing setup costs, the flow covers can be very effective.

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  • Syed Ali, Sharifah Aishah & Doostmohammadi, Mahdi & Akartunalı, Kerem & van der Meer, Robert, 2018. "A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups," International Journal of Production Economics, Elsevier, vol. 203(C), pages 276-285.
    • Handle: RePEc:eee:proeco:v:203:y:2018:i:c:p:276-285
    DOI: 10.1016/j.ijpe.2018.07.002
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    3. 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.
    4. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.

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