Substitution in a Hybrid Remanufacturing System

Marshall, Sarah; Archibald, Thomas Welsh

doi:10.1016/j.procir.2014.07.073

Cited by 14 publications

(6 citation statements)

References 12 publications

(15 reference statements)

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“…The regular supplier is cheaper in price, but unreliable in the supply capacity, and there exists a chance of supply disruption with a probability of P. For the second one, it is comparatively expensive, but completely reliable, any demand of raw materials can be met with no supply disruption. The assumption is consistent with some literature [30][31][32], and Ahiska, et al [33] reckon that multi-suppliers are preferred by firms even under no risk of supply disruptions to obtain better responsiveness and faster supply because of the high punishing cost for the unsatisfied demand. It is often the case that the firms purchase the major part of their materials from the regular supplier with a longer lead time, and turn to the alternative one with expedited service when needed in spite of the high price.…”

Section: Model Description and Formulationsupporting

confidence: 87%

Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand

2017

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Abstract:The intensive shortage of natural resources and the inchoate phase of automobile remanufacturing in a closed-loop supply chain (CLSC) are driving people to take cyclic manufacturing seriously. Aiming at maximizing resource utilization and produce profits, we apply an optimizing mathematical analysis to the modeling of automobile engine remanufacturing in a joint manufacturing system, in which the quantity and quality of procurement, and the demand of the market, are both uncertain. The manufacturer can either produce new products with raw materials or remanufacture the returned product taken back from customers; the raw materials are bought from two suppliers with certain probabilities of disruption in the supply. The returned products are classified into different quality levels according to the testing results after sorting, by considering the remanufacture-up-to strategy we obtained the optimal remanufacturing ratio, then the manufacturing quantity and corresponding maximized total profit of this joint system are determined. We also investigated a real-life case of auto engine remanufacturing, comparing it with the theory of optimal remanufacturing policy, and the results indicate that a material savings of more than 45% and a cost improvement of more than 40% could be achieved when the optimal remanufacturing policy of our model is implemented.

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Section: Model Description and Formulationsupporting

confidence: 87%

Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand

2017

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“…including manufacturing/remanufacturing planning, and then analyzed the effect of the downward substitution on incremental profit. Marshall and Archibald [29] conducted an integrated research on the recycling, manufacturing and remanufacturing decisions under different conditions, such as no substitution, two-way substitution, upward substitution and downward substitution between original manufactured and remanufactured products. Chen et al [30] studied effects of carbon constraint on the production policies when oneway substitution between the green and standard products is considered.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Assumption 2. There are no backorders, and the shortage cost is not considered [19,28,29]. Assumption 3.…”

Section: Problem Description and Assumptionmentioning

confidence: 99%

Production Decisions of Manufacturing and Remanufacturing Hybrid System Considering Downward Substitution: A Comprehensive Model Integrating Financial Operations

Wang

Fei

2020

IEEE Access

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Traditional approaches for production decisions of the manufacturing/remanufacturing hybrid system usually focus on physical operations and ignore the corresponding financial aspects. This paper proposes a mixed integer stochastic programming model integrating physical and financial operations based on scenario analysis, which considers the downward substitution between new and remanufactured products and selects financial performance indicator, i.e. economic value added, as the optimal objective function. The prime superiorities of the integrated approach are emphasized through a numerical example, and sensitivity analyses on some critical parameters are conducted. The findings indicate that the integrated approach can not only ensure the stability of hybrid production system, but also significantly improve financial operation efficient and reduce total financial operation cost, and thus eventually brings the manufacturer higher objective value. Furthermore, the advantage of integrated approach in objective optimization is more prominent when manufacturers intend to provide higher service level to customers. Finally, the results proposed in this paper provide applicable suggestions to manufacturers and financial institutions. INDEX TERMS Production decisions, manufacturing /remanufacturing hybrid system, downward substitution, financial operations, economic value added YONGJIAN WANG was born in Henan, China, in 1989. He received the B.S. degree in financial management from Henan Polytechnic University in 2011, the M.S. degree in business management from Nanjing University of Finance & Economics in 2013, and the PhD degree in management science and engineering from Southeast University in 2017. Since 2017, he has been a lecturer in the Business School at Jiangsu Normal University. His research interests are in production and operations management, supply chain management, financial management, and systems simulation modeling and optimization.

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“…(2015) talep/geri dönen ürün miktarı olasılık dağılımlarının özelliklerinin kârlılığı nasıl etkilediğini sayısal olarak araştırarak Ahiska ve Kurtul (2014)'un çalışmasını genişletmiştir. Marshall ve Archibald (2015), optimal üretim, yeniden üretim ve ikame kararlarını veren politikayı bulmak için yarı-Markov karar süreci yaklaşımını önermiştir. Kaya (2010) diğerlerinden farklı olarak kısmi bir ikame politikası kullanmış ve geri dönen ürünlere verilecek optimal teşvik, üretim ve yeniden üretim miktarlarını bulmak için tek dönemli bir model önermiştir.…”

Section: Literatür Taramasıunclassified

Yeniden üretim ve tek yönlü ikame ile kafile büyüklüğü belirleme

Solyalı¹

2017

Ankara Üniversitesi SBF Dergisi

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Bu çalışmada, bir üreticinin yeni ürünlere olan talebi yeni ürün üreterek, yeniden üretilmiş ürünlere olan talebi ise geri dönen ürünleri yeniden üreterek veya yeni üretilmiş ürünlerle ikame ederek karşılayabildiği bir kafile büyüklüğü belirleme problemi ele alınmıştır. Geri dönen ürünler yeniden üretimle geri kazanılabileceği gibi bertaraf da edilebilirler. Bu problemde amaç, planlama ufkunun her bir döneminde üretilecek yeni ürün miktarını, yeniden üretilecek ürün miktarını, yeniden üretilmiş ürünlere olan talebi karşılayan yeni ürün miktarını ve bertaraf edilecek geri dönen ürün miktarını belirleyerek, üretim, ikame, bertaraf ve envanter maliyetlerini içeren toplam maliyeti enazlamaktır. Problem için yeni bir karışık tamsayılı programlama modeli önerilmiş ve literatürde varolan model ile karşılaştırılmıştır. Kapsamlı sayısal deneyler yapılmış ve sonuçlar önerilen modelin varolan modele göre önemli ölçüde üstün sonuçlar verdiğini göstermiştir. Tek yönlü ikamenin ikamesiz duruma göre maliyet tasarrufu sağlayabildiği gösterilmiş ve sayısal deneylerle bu maliyet tasarrufunun büyüklüğü belirlenmiştir. Önerilen model yeni üretim, yeniden üretim, ikame ve bertaraf kararlarını birlikte veren üreticiler için etkili bir karar verme aracı olarak kullanılabilecektir.Anahtar Sözcükler: Üretim Planlama, Kafile Büyüklüğü Belirleme, Yeniden Üretim, İkame, Karışık Tamsayılı Programlama Lot Sizing with Remanufacturing and One-Way Subsitution AbstractThis study considers a lot sizing problem in which a producer can meet the demand for new products by manufacturing new products and the demand for remanufactured products by remanufacturing returned products or substituting remanufactured products with the new ones. The returned products can be recovered through remanufacturing or disposed. The aim in this problem is to minimize the total cost composed of production, inventory, substitution and disposal costs by determining the amount of new items to manufacture, the amount of used items to remanufacture, the amount of remanufactured items to be substituted by new items, and the amount of used items to dispose in each time period of the planning horizon. A new mixed integer programming model is proposed and compared with the model existing in the literature. Extensive computational experiments have been performed and the results show that the new model yields superior results than the existing one. It has been shown that one-way substitution can provide cost savings compared to the case without substitution and the magnitude of cost savings is determined through computational results. The proposed model is an effective decision-making tool for manufacturers which jointly decide on the manufacturing of new products, remanufacturing of used products, substitution of remanufactured products, and disposal of used products.

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Substitution in a Hybrid Remanufacturing System

Cited by 14 publications

References 12 publications

Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand

Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand

Production Decisions of Manufacturing and Remanufacturing Hybrid System Considering Downward Substitution: A Comprehensive Model Integrating Financial Operations

Yeniden üretim ve tek yönlü ikame ile kafile büyüklüğü belirleme

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