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Complete solution of the extended EOQ repair and waste disposal model with switching costs

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Listed:
  • Kozlovskaya, Nadezhda
  • Pakhomova, Nadezhda
  • Richter, Knut

Abstract

The EOQ repair and waste disposal problem was studied first by Richter, 1997. A first shop is providing a homogeneous product used by a second shop at a constant demand rate. The first shop is manufacturing new products and it is also repairing products used by a second shop, which are then regarded as being as good as new. The products are employed by a second shop and collected there according to a repair rate. The other products are immediately disposed of as waste. At the end of some period of time, the collected products are brought back to the first shop and will be stored as long as necessary and then repaired. If the repaired products are finished, the manufacturing process starts to cover the remaining demand for the time interval. The model was extended by Saadany and Jaber, 2008 to the problem of minimizing the total cost of production, remanufacturing and inventory while incorporating additional switching costs. The switching cost is incurred when the process shifts from repair to production and from production to repair. However, in their paper the authors did not provide a complete solution to this complex problem. We provide the solution in this paper.

Suggested Citation

  • Kozlovskaya, Nadezhda & Pakhomova, Nadezhda & Richter, Knut, 2015. "Complete solution of the extended EOQ repair and waste disposal model with switching costs," Discussion Papers 376, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:376
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    References listed on IDEAS

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    1. El Saadany, Ahmed M.A. & Jaber, Mohamad Y. & Bonney, Maurice, 2013. "How many times to remanufacture?," International Journal of Production Economics, Elsevier, vol. 143(2), pages 598-604.
    2. Andriolo, Alessandro & Battini, Daria & Grubbström, Robert W. & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A century of evolution from Harris׳s basic lot size model: Survey and research agenda," International Journal of Production Economics, Elsevier, vol. 155(C), pages 16-38.
    3. Schulz, Tobias & Voigt, Guido, 2014. "A flexibly structured lot sizing heuristic for a static remanufacturing system," Omega, Elsevier, vol. 44(C), pages 21-31.
    4. Richter, Knut, 1996. "The extended EOQ repair and waste disposal model," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 443-447, August.
    5. 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.
    6. Richter, Knut & Dobos, Imre, 1999. "Analysis of the EOQ repair and waste disposal problem with integer setup numbers," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 463-467, March.
    7. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
    8. Jaber, Mohamad Y. & El Saadany, Ahmed M.A., 2009. "The production, remanufacture and waste disposal model with lost sales," International Journal of Production Economics, Elsevier, vol. 120(1), pages 115-124, July.
    9. 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.
    10. Choi, Dae-Won & Hwang, Hark & Koh, Shie-Gheun, 2007. "A generalized ordering and recovery policy for reusable items," European Journal of Operational Research, Elsevier, vol. 182(2), pages 764-774, October.
    11. 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.
    12. 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.
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    Cited by:

    1. Kozlovskaya, Nadezhda & Pakhomova, Nadezhda & Richter, Knut, 2016. "A general production and recovery EOQ model with stationary demand and return rates," Discussion Papers 378, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.

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