IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v57y2020i4d10.1007_s12597-020-00457-6.html
   My bibliography  Save this article

Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector

Author

Listed:
  • Malolan Sundararaman

    (Nathional Institute of Technology Tiruchirappalli)

  • Mathirajan Muthu

    (Indian Institute of Science)

Abstract

In the last 60 years, remanufacturing has evolved as the major way for recovering value from products or components of the product, because the remanufactured product or component is not only cheaper than those obtained from conventional sources of manufacturing and/or purchasing, but the outputs are also “good-as-new”. The automobile sector, in particular, has seen predominant remanufacturing. Given the benefits of remanufacturing, this study proposes a new prospective business approach, particularly for the Indian automobile sector by introducing component remanufacturing. Particularly this study considers Multiple Products (MP) that are assembled by proposing Component Remanufacturing (CR) as a new source along with regular manufacturing and purchasing sources for components. In addition, this study considers the complexities of “Backordering (BO)” along with a new proposal for “Product Substitution (PS)” option to satisfy demand. Hence, the research problem considered in this study is referred as “MP-CR problem with BO&PS”. For this complex and new problem, the study empirically demonstrates that the MP-CR problem with BO&PS is a new prospective profitable business approach in comparison with the existing “Multi Products problem with Backordering (MP problem with BO)” for an Indian automobile OEM, by proposing a mathematical model with the objective of profit maximization.

Suggested Citation

  • Malolan Sundararaman & Mathirajan Muthu, 2020. "Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1244-1280, December.
    • Handle: RePEc:spr:opsear:v:57:y:2020:i:4:d:10.1007_s12597-020-00457-6
    DOI: 10.1007/s12597-020-00457-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-020-00457-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-020-00457-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2015. "Reprint of “Supply chain-based barriers for truck-engine remanufacturing in China”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 94-108.
    2. Teunter, Ruud & Kaparis, Konstantinos & Tang, Ou, 2008. "Multi-product economic lot scheduling problem with separate production lines for manufacturing and remanufacturing," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1241-1253, December.
    3. Xiaochen Sun & Mengmeng Wu & Fei Hu, 2013. "Two-Period Inventory Control with Manufacturing and Remanufacturing under Return Compensation Policy," Discrete Dynamics in Nature and Society, Hindawi, vol. 2013, pages 1-8, March.
    4. Mabini, Marilyn C. & Pintelon, Liliane M. & Gelders, Ludo F., 1992. "EOQ type formulations for controlling repairable inventories," International Journal of Production Economics, Elsevier, vol. 28(1), pages 21-33, November.
    5. Roland Geyer & Luk N. Wassenhove, 2005. "The Impact of Constraints in Closed-loop Supply Chains: The Case of Reusing Components in Product Manufacturing," Lecture Notes in Economics and Mathematical Systems, in: Bernhard Fleischmann & Andreas Klose (ed.), Distribution Logistics, pages 203-219, Springer.
    6. Kleber, Rainer & Minner, Stefan & Kiesmuller, Gudrun, 2002. "A continuous time inventory model for a product recovery system with multiple options," International Journal of Production Economics, Elsevier, vol. 79(2), pages 121-141, September.
    7. Pan, Zhendong & Tang, Jiafu & Liu, Ou, 2009. "Capacitated dynamic lot sizing problems in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 198(3), pages 810-821, November.
    8. Piñeyro, Pedro & Viera, Omar, 2010. "The economic lot-sizing problem with remanufacturing and one-way substitution," International Journal of Production Economics, Elsevier, vol. 124(2), pages 482-488, April.
    9. Luiza Ribeiro Alves Cunha & Ana Paula Santos Delfino & Kamila Almeida dos Reis & Adriana Leiras, 2018. "Economic production quantity (EPQ) model with partial backordering and a discount for imperfect quality batches," International Journal of Production Research, Taylor & Francis Journals, vol. 56(18), pages 6279-6293, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Timo Hilger & Florian Sahling & Horst Tempelmeier, 2016. "Capacitated dynamic production and remanufacturing planning under demand and return uncertainty," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(4), pages 849-876, October.
    3. Felix T.S. Chan & Nan Li & S.H. Chung & Mozafar Saadat, 2017. "Management of sustainable manufacturing systems-a review on mathematical problems," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1210-1225, February.
    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.
    5. Zhang, Zhi-Hai & Jiang, Hai & Pan, Xunzhang, 2012. "A Lagrangian relaxation based approach for the capacitated lot sizing problem in closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 140(1), pages 249-255.
    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. 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.
    8. 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.
    9. Attila, Öykü Naz & Agra, Agostinho & Akartunalı, Kerem & Arulselvan, Ashwin, 2021. "Robust formulations for economic lot-sizing problem with remanufacturing," European Journal of Operational Research, Elsevier, vol. 288(2), pages 496-510.
    10. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    11. Kilic, Onur A. & Tunc, Huseyin & Tarim, S. Armagan, 2018. "Heuristic policies for the stochastic economic lot sizing problem with remanufacturing under service level constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1102-1109.
    12. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    13. Sabbaghi, Mostafa & Behdad, Sara & Zhuang, Jun, 2016. "Managing consumer behavior toward on-time return of the waste electrical and electronic equipment: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 182(C), pages 545-563.
    14. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    15. Chen, Kee-Kuo & Ho, Hui-Ping & Chang, Ching-Ter, 2015. "Estimating attributes importance for container shipping industry by closing the listening gap with maximum convergent validity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 145-163.
    16. Hao, Zhifeng & Yeh, Wei-Chang & Tan, Shi-Yi, 2021. "One-batch preempt deterioration-effect multi-state multi-rework network reliability problem and algorithms," Reliability Engineering and System Safety, Elsevier, vol. 215(C).
    17. Shin, Hojung & Park, Soohoon & Lee, Euncheol & Benton, W.C., 2015. "A classification of the literature on the planning of substitutable products," European Journal of Operational Research, Elsevier, vol. 246(3), pages 686-699.
    18. Kyung Sung Jung & Milind Dawande & H. Neil Geismar & V. Daniel R. Guide & Chelliah Sriskandarajah, 2016. "Supply planning models for a remanufacturer under just-in-time manufacturing environment with reverse logistics," Annals of Operations Research, Springer, vol. 240(2), pages 533-581, May.
    19. Piñeyro, Pedro & Viera, Omar, 2010. "The economic lot-sizing problem with remanufacturing and one-way substitution," International Journal of Production Economics, Elsevier, vol. 124(2), pages 482-488, April.
    20. Byung Duk Song & Young Dae Ko, 2017. "Effect of Inspection Policies and Residual Value of Collected Used Products: A Mathematical Model and Genetic Algorithm for a Closed-Loop Green Manufacturing System," Sustainability, MDPI, vol. 9(9), pages 1-14, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opsear:v:57:y:2020:i:4:d:10.1007_s12597-020-00457-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.