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Optimal Control of Production, Remanufacturing and Refurbishing Activities in a Finite Planning Horizon Inventory System

Author

Listed:
  • Lakdere Benkherouf

    (Kuwait University)

  • Konstantina Skouri

    (University of Ioannina)

  • Ioannis Konstantaras

    (University of Macedonia)

Abstract

In this paper, an inventory system with production, remanufacturing and refurbishing activities is studied, over a finite planning horizon. The demand is assumed time varying. Used products are returned by customers, and after inspection, they can be classified either as “remanufacturable” or as “refurbishable” items. The remanufacturing process brings “remanufacturable” items up to quality standards that are as rigorous as those of new items. The refurbished items are sold to a secondary market at a reduced price. In order to control the system, two types of policies are considered. For these two policies, a procedure is proposed that determines the order and remanufacturing quantities and the inventory level of returned (used) items at the start of the inspection and recovery processes, which minimize the total costs.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joptap:v:168:y:2016:i:2:d:10.1007_s10957-015-0741-9
    DOI: 10.1007/s10957-015-0741-9
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    References listed on IDEAS

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    1. Konstantaras, I. & Skouri, K., 2010. "Lot sizing for a single product recovery system with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 203(2), pages 326-335, June.
    2. El Saadany, Ahmed M.A. & Jaber, Mohamad Y., 2011. "A production/remanufacture model with returns' subassemblies managed differently," International Journal of Production Economics, Elsevier, vol. 133(1), pages 119-126, September.
    3. Konstantaras, I. & Papachristos, S., 2008. "A note on: Developing an exact solution for an inventory system with product recovery," International Journal of Production Economics, Elsevier, vol. 111(2), pages 707-712, February.
    4. Fleischmann, Mortiz & Krikke, Hans Ronald & Dekker, Rommert & Flapper, Simme Douwe P., 2000. "A characterisation of logistics networks for product recovery," Omega, Elsevier, vol. 28(6), pages 653-666, December.
    5. 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.
    6. Talal M. Al-Khamis & Lakdere Benkherouf & Mohamed Omar, 2014. "Optimal policies for a finite-horizon batching inventory model," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(10), pages 2196-2202, October.
    7. Dobos, Imre & Richter, Knut, 2004. "An extended production/recycling model with stationary demand and return rates," International Journal of Production Economics, Elsevier, vol. 90(3), pages 311-323, August.
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    Cited by:

    1. Jauhari, Wakhid Ahmad & Adam, Niimas Ayu Frensilia Putri & Rosyidi, Cucuk Nur & Pujawan, I Nyoman & Shah, Nita H., 2020. "A closed-loop supply chain model with rework, waste disposal, and carbon emissions," Operations Research Perspectives, Elsevier, vol. 7(C).
    2. Alireza Pooya & Morteza Pakdaman, 2019. "Optimal control model for finite capacity continuous MRP with deteriorating items," Journal of Intelligent Manufacturing, Springer, vol. 30(5), pages 2203-2215, June.
    3. Yiju Wang & Donglei Du & Jingfu Huang, 2021. "Optimal Replenishment Strategy for Inventory Mechanism with Step-Shaped Demand," Journal of Optimization Theory and Applications, Springer, vol. 190(3), pages 841-860, September.
    4. Samarghandi, Hamed, 2017. "Studying the impact of merged and divided storage policies on the profitability of a remanufacturing system with deteriorating revenues," International Journal of Production Economics, Elsevier, vol. 193(C), pages 160-171.

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