Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Heuristic for Service-Parts Lot-Sizing with Disassembly Option

분해옵션 포함 서비스부품 로트사이징 휴리스틱

  • Jang, Jin-Myeong (Graduate School Logistics, Inha University) ;
  • Kim, Hwa-Joong (Graduate School Logistics, Inha University) ;
  • Son, Dong-Hoon (Department of Civil Engineering, The Hong Kong University of Science and Technology) ;
  • Lee, Dong-Ho (Department of Industrial Engineering, Hanyang University)
  • 장진명 (인하대학교 물류전문대학원) ;
  • 김화중 (인하대학교 물류전문대학원) ;
  • 손동훈 (홍콩과학기술대학교 토목환경공학과) ;
  • 이동호 (한양대학교 산업공학과)
  • Received : 2021.05.06
  • Accepted : 2021.05.31
  • Published : 2021.06.30
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Abstract

Due to increasing awareness on the treatment of end-of-use/life products, disassembly has been a fast-growing research area of interest for many researchers over recent decades. This paper introduces a novel lot-sizing problem that has not been studied in the literature, which is the service-parts lot-sizing with disassembly option. The disassembly option implies that the demands of service parts can be fulfilled by newly manufactured parts, but also by disassembled parts. The disassembled parts are the ones recovered after the disassembly of end-of-use/life products. The objective of the considered problem is to maximize the total profit, i.e., the revenue of selling the service parts minus the total cost of the fixed setup, production, disassembly, inventory holding, and disposal over a planning horizon. This paper proves that the single-period version of the considered problem is NP-hard and suggests a heuristic by combining a simulated annealing algorithm and a linear-programming relaxation. Computational experiment results show that the heuristic generates near-optimal solutions within reasonable computation time, which implies that the heuristic is a viable optimization tool for the service parts inventory management. In addition, sensitivity analyses indicate that deciding an appropriate price of disassembled parts and an appropriate collection amount of EOLs are very important for sustainable service parts systems.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2017S1A5A2A01024245).

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