Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint

Abstract

In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of the joint manufacturing/remanufacturing facility.

Environmentally conscious manufacturing and product recovery (ECMPRO): A review of the state of the art

“…They consider continuous review (S-1, S) inventory control policy for both types of products. Bayindir et al (2007) extend these two studies by considering a finite production capacity. Yongjian et al (2006) consider the problem with multiple product types and multiple periods and develop a DP-based approximate solution procedure to obtain near optimal solutions.…”

Modeling the merging capacity for two streams of product returns in remanufacturing systems

“…Dobos and Richter [14] studied the quality of used products in an integrated production recycling system, and showed that it is better for the manufacturer to only buy back reusable products. Also, many applications and methods for analyzing the hybrid manufacturing system are discussed in [5][6][7]60,1,41].…”

Substitution in a Hybrid Remanufacturing System

“…It was found that offering substitution leads to lower levels of recovered inventory. Single-period problems with two-way substitution have been studied by Bayindir et al [11] and Kaya [12], who assume that the proportion of customers who accept a substitution is known and constant. The quality of returned used goods is addressed by Kaya [12] by way of an incentive paid to the consumer in exchange for returning used goods.…”