Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지

Optimal Disposal Policy in a Hybrid Production System with Manufacturing and Remanufacturing

신제품 생산과 회수제품 재가공이 이루어지는 생산시스템에서 최적 처분 정책에 대한 연구

  • Kim, Eun Gab (College of Business Administration, Ewha Womans University)
  • 김은갑 (이화여자대학교 경영대학)
  • Published : 2007.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

We address a disposal issue of returned products in a product recovery system where a single product is stocked in order to meet a demand from customers who may return products after usage. Product returns occur randomly and can be accepted for remanufacturing or disposed of depending on the state of the system. We examine the structure of the optimal disposal policy for returned product that utilizes the information of the inventory of both serviceable and remanufacturable products. Numerical study indicates that it can be characterized by a monotonic threshold type of the curve. A disposal is allowed only when the remanufacturable inventory level exceeds a threshold which is the function of the inventory level of serviceable product and it is decreasing as the serviceable inventory level increases. Sensitivity analysis also indicates that the optimal disposal policy and the optimal profit have monotonic properties with respect to system parameters.

Keywords

Acknowledgement

Supported by : 한국학술진흥재단

References

  1. Bertsekas, D. P. (1987), Dynamic Programming: Deterministic and Stochastic Models, Prentice-Hall, Englewood Cliffs
  2. Carr, S. and Duenyas, I. (2000), Optimal admission control and sequencing in a Make-to-stock and Make-to-order production system, Operations Research
  3. Fleischmann, M., Bloernhof-Ruwaard, J., Dekker, R., van der Laan, E., van Nunen, J., and Van Wassenhove, L. (1997), Quantitative models for reverse logistics: A review, European Journal of Operational Research, 151, 25-37 https://doi.org/10.1016/S0377-2217(02)00592-1
  4. Ha, A. Y. (1997), Optimal dynamic scheduling policy for a make-to-stock production system, Operations Research, 45, 42-53 https://doi.org/10.1287/opre.45.1.42
  5. Heyman, D. (1977), Optimal disposal policies for a single item inventory system with returns, Naval Research Logistics, 24, 385-405 https://doi.org/10.1002/nav.3800240302
  6. lnderfurth, K. (1997), Simple optimal replenishment and disposal policies for a product recovery system with lead times, OR Spektrum, 19, 111-122 https://doi.org/10.1007/BF01545510
  7. Mahadevan B., Pyke, D., and Fleischmann, M. (2003), Periodic review, push inventory policies for remanufacturing, European Journal of Operational Research, 151, 536-551 https://doi.org/10.1016/S0377-2217(02)00627-6
  8. Puterrnan, M. L. (2005), Markov Decision processes, John Wiley & Sons
  9. Savaskan, R., Bhattacharya, S., and Van Wassenhove, L. (2004), Closed-loop supply chain models with product remanufacturing, Management Science, 50(2), 239-252 https://doi.org/10.1287/mnsc.1030.0186
  10. Simpson, V. (1978), Optimal solution structure for a repairable inventory problem, Operations research, 26(2), 270-281 https://doi.org/10.1287/opre.26.2.270
  11. Teunter, R., and Vlachos, D. (2002), On the necessity of a disposal option for returned items that can be remanufactured, International Journal of Production Economics, 75, 257-266 https://doi.org/10.1016/S0925-5273(01)00096-2
  12. Van der Laan, E., Dekker, R., Salomon, M., and Ridder, A. (1996), An (s,Q) inventory model with remanufacturing and disposal, International Journal of Production Economics, 46, 339-350 https://doi.org/10.1016/0925-5273(95)00020-8
  13. Van der Laan, E., Dekker, R., and Salomon, M. (1996), Product remanufacturing and disposal: A numerical comparison of alternative control strategies, International Journal of Production Economics, 45, 489-498 https://doi.org/10.1016/0925-5273(95)00137-9