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Inventory Control in Hybrid Systems with Remanufacturing

Author

Listed:
  • Erwin van der Laan

    (Erasmus University, P.O. Box 1738, NL-3000 DR Rotterdam, The Netherlands)

  • Marc Salomon

    (Tilburg University, P.O. Box 90153, NL-5000 LE Tilburg, The Netherlands)

  • Rommert Dekker

    (Erasmus University, P.O. Box 1738, NL-3000 DR Rotterdam, The Netherlands)

  • Luk Van Wassenhove

    (INSEAD, Boulevard de Constance, F-77305 Fontainebleau, France)

Abstract

This paper is on production planning and inventory control in systems where manufacturing and remanufacturing operations occur simultaneously. Typical for these hybridsystems is, that both the output of the manufacturing process and the output of the remanufacturing process can be used to fulfill customer demands. Here, we consider a relatively simple hybrid system, related to a single component durable product. For this system, we present a methodology to analyse a PUSH control strategy (in which all returned products are remanufactured as early as possible) and a PULL control strategy (in which all returned products are remanufactured as late as is convenient). The main contributions of this paper are (i) to compare traditional systems without remanufacturing to PUSH and to PULL controlled systems with remanufacturing, and (ii) to derive managerial insights into the inventory related effects of remanufacturing.

Suggested Citation

  • Erwin van der Laan & Marc Salomon & Rommert Dekker & Luk Van Wassenhove, 1999. "Inventory Control in Hybrid Systems with Remanufacturing," Management Science, INFORMS, vol. 45(5), pages 733-747, May.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:5:p:733-747
    DOI: 10.1287/mnsc.45.5.733
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    References listed on IDEAS

    as
    1. van der Laan, Erwin & Dekker, Rommert & Salomon, Marc & Ridder, Ad, 1996. "An (s, Q) inventory model with remanufacturing and disposal," International Journal of Production Economics, Elsevier, vol. 46(1), pages 339-350, December.
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    4. Ronald W. Wolff, 1982. "Poisson Arrivals See Time Averages," Operations Research, INFORMS, vol. 30(2), pages 223-231, April.
    5. van der Laan, Erwin & Salomon, Marc, 1997. "Production planning and inventory control with remanufacturing and disposal," European Journal of Operational Research, Elsevier, vol. 102(2), pages 264-278, October.
    6. Cho, Danny I. & Parlar, Mahmut, 1991. "A survey of maintenance models for multi-unit systems," European Journal of Operational Research, Elsevier, vol. 51(1), pages 1-23, March.
    7. Vincent P. Simpson, 1978. "Optimum Solution Structure for a Repairable Inventory Problem," Operations Research, INFORMS, vol. 26(2), pages 270-281, April.
    8. van der Laan, Erwin & Salomon, Marc & Dekker, Rommert, 1999. "An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies," European Journal of Operational Research, Elsevier, vol. 115(1), pages 195-214, May.
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