Product structure complexity and scheduling of operations in recoverable manufacturing

Guide, V. Daniel R.; Srivastava, Rajesh; Kraus, Mark E.

doi:10.1080/002075497194345

Cited by 89 publications

(33 citation statements)

References 10 publications

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“…The assumption of early articles in this field was that incoming quality was uncertain and exogenous. Guide, Srivastava, and Kraus (1997) and Guide and Srivastava (1998) show that remanufacturing environments are more complex and difficult to manage than traditional manufacturing operations because of this assumption. This is 41 due to the extra steps involved in the sorting and processing of the cores back to "like new" condition so that it can be used in salable product.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Over the past decade, academic literature studying the effect of highly variable quality in recovered materials on production systems has evolved tremendously (Guide et al 1997;Guide and Srivastava 1998;Guide and Van Wassenhove 2001;Aras et al 2006;Ferguson et al 2008;Pokharel and Mutha 2009). This literature has shown how firms are able to minimize costs by accounting for this variability, and therefore improve their financial position.…”

Section: Introductionmentioning

confidence: 99%

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Recycling procurement strategies with variable yield suppliers

Rowe

Ekşioğlu

2015

Ann Oper Res

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Companies are no longer judged on financial performance alone, but rather on their "Triple-Bottom Line", which accounts for social and environmental measures as well. This leads companies to investigate the sustainability of their operations and their products. Between the increasing cost of virgin raw materials and customers demanding post-consumer product content, manufacturers have begun looking at recycled material options. This paper addresses a procurement issue facing a polystyrene packaging manufacturer considering its optimal purchasing strategies between two suppliers -one providing virgin material, the other offering recycled material. A single-period scenario is modeled where each supplier sells product with a known yield distribution at market pricing. The manufacturer must choose whether to sole-source or dual-source, as well as determine how much material to purchase from each supplier to meet deterministic demand. Our results indicate that there is a range of prices from the recycled material supplier where dual-sourcing will lead to higher manufacturer profits compared to solesourcing. We show, based on the procurement strategy, the optimal quantities to purchase to maximize manufacturer's expected profit.We then investigate the area of supplier development and how the manufacturer can improve their expected profit by investing in their supplier's quality improvement effort. The questions addressed are how much the manufacturer would be willing to invest and how they ensure the proper return on their investment. This paper determines the expected increase in profit for the manufacturer from yield improvement projects at a supplier, which therefore becomes the upper threshold for investment. We also find that a company can err in their project acceptance criteria if they have an approval process that views project acceptance myopically rather than holistically.Lastly, we develop a systematic and comprehensive approach to the supplier selection process. We utilize the fundamental concepts behind W. Edwards Deming's Plan-Do-Study-Act improvement cycle and apply them to the supplier selection process.We also present analytic and numerical study results that can be used in conjunction with contractual mechanisms to not only overcome issues such as free riding, but to also incentivize suppliers to engage in supplier development projects they may not have otherwise undertaken. In order to understand why companies have become more attentive to the issue of recycling, one must look back over the past few decades. Firms have faced increased scrutiny on the environmental impact surrounding the disposal of consumer goods, the disposition of production by-products, and how they act as corporate citizens. No longer are companies judged solely on their financial measurements. They are now being evaluated on the "Triple Bottom Line". This metric measures a firm's social and environmental performance, as well as its economic performance. Manufacturers must 2 now address how their products impact the environment...

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Recycling procurement strategies with variable yield suppliers

Rowe

Ekşioğlu

2015

Ann Oper Res

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“…Again, most of the research uses discrete-time simulation, where the performance of a reasonably complex shop and product structure is studied. In two studies, Guide et al [40], [41] analyze different bill of materials (i.e., product structure trees) in a job shop with disassembly, 10 remanufacturing stations, and reassembly; in their study there are also serial-number-specific products, where all parts in a remanufactured product must be the same ones disassembled earlier (i.e., they all have the same serial number). They find that earliest-due-date type of scheduling rules perform well, although product structure impacts performance.…”

Section: Priority Rulesmentioning

confidence: 99%

“…The answer to these questions would, a priori, depend on several factors, such as the configuration of the shop (i.e., number of machines, routing, processing times) and the bill of materials of the products. So, such questions have been tackled using simulation (e.g., Guide et al [40], [41]). The basic insight is that simple release rules-such as the order of disassembly-perform reasonably well and are recommended due to their simplicity.…”

Section: Release Mechanismsmentioning

confidence: 99%

Closed-Loop Supply Chains with Remanufacturing

Souza

Smith²

2008

State-of-the-Art Decision-Making Tools in the Information-Intensive Age

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In this tutorial I present an overview of closed-loop supply chains, which are supply chains where there are flows of products (postpurchase) back to manufacturers. Examples include supply chains with consumer returns and leasing options. I start by defining basic terms: differences with respect to forward chains, sources of product returns, disposition options for product returns (scrap, recycling, reuse, cannibalization for spare parts, and remanufacturing), strategic, tactical, and operational issues, along with regulatory and legislative issues. I then provide a brief overview of current practices, particularly regarding the state of remanufacturing in select industries: personal computers and peripherals, B2B information technology equipment, tires, and construction equipment (Caterpillar). I review the extant academic literature on closed-loop supply chains, particularly as it regards to business and management aspects, with less of a focus on environmental practices. Finally, I conclude with some directions for future research.

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“…Scheduling arrivals of new modules, storing or disposing excess recovered modules are some of the factors analyzed by researchers [104][105].…”

Section: Reverse Supply Chainmentioning

confidence: 99%