Simple heuristics for push and pull remanufacturing policies
AbstractInventory policies for joint remanufacturing and manufacturing have recently received much attention. Most efforts, though, were related to (optimal) policy structures and numerical optimization, rather than closed form expressions for calculating near optimal policy parameters. The focus of this paper is on the latter. We analyze an inventory system with unit product returns and demands where remanufacturing is the cheaper alternative for manufacturing. Manufacturing is also needed, however, since there are less returns than demands. The cost structure consists of setup costs, holding costs, and backorder costs. Manufacturing and remanufacturing orders have non-zero lead times. To control the system we use certain extensions of the familiar (s,Q) policy, called push and pull remanufacturing policies. For all policies we present simple, closed form formulae for approximating the optimal policy parameters under a cost minimization objective. In an extensive numerical study we show that the proposed formulae lead to near-optimal policy parameters.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 175 (2006)
Issue (Month): 2 (December)
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Web page: http://www.elsevier.com/locate/eor
Other versions of this item:
- van der Laan, E.A. & Teunter, R.H., 2004. "Simple heuristics for push and pull remanufacturing policies," ERIM Report Series Research in Management ERS-2004-090-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- van der Laan, E.A. & Teunter, R.H., 2004. "Simple heuristics for push and pull remanufacturing policies," Econometric Institute Research Papers EI 2004-34, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- M - Business Administration and Business Economics; Marketing; Accounting
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
- R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
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