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System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies

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  • Poles, Roberto
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    Abstract

    Remanufacturing activity views the reverse supply chain of reclaimed goods as integral to the traditional supply chain to the consumer. At the end of the useful life of products, a reverse supply process is activated in which unwanted materials and products are recovered from end users to recapture some of their value. Therefore, planning for the traditional supply chain of goods must take into account the recovered products. Two main processes that need to be considered are inventory control and production planning. In this paper, we model a production and inventory system for remanufacturing using a System Dynamics simulation modelling approach. The aim is to explore the dynamics of the remanufacturing process and to evaluate system improvement strategies. Specifically, the analysis focuses on the effects of capacity planning and lead times on the system which presents push and pull inventory policies driven mainly by the inventory coverage. The research findings reveal efficiency in the remanufacturing process with higher remanufacturing capacity if the quantity of remanufacturable returns and the remanufacturing lead time are increased and decreased respectively. Moreover, an increase of the production lead time has a higher effect on the system performance than an equivalent increase in the remanufacturing lead time. In addition, we provide a case study both to support these findings and to further validate the developed model.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 144 (2013)
    Issue (Month): 1 ()
    Pages: 189-199

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    Handle: RePEc:eee:proeco:v:144:y:2013:i:1:p:189-199

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    Web page: http://www.elsevier.com/locate/ijpe

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    Keywords: Production; Inventory; Remanufacturing; System Dynamics;

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    1. van der Laan, Erwin & Dekker, Rommert & Salomon, Marc & Ridder, Ad, 1996. "An (s, Q) inventory model with remanufacturing and disposal," International Journal of Production Economics, Elsevier, vol. 46(1), pages 339-350, December.
    2. van der Laan, Erwin & Dekker, Rommert & Salomon, Marc, 1996. "Product remanufacturing and disposal: A numerical comparison of alternative control strategies," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 489-498, August.
    3. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    4. Georgiadis, Patroklos & Vlachos, Dimitrios, 2004. "The effect of environmental parameters on product recovery," European Journal of Operational Research, Elsevier, vol. 157(2), pages 449-464, September.
    5. Inderfurth, Karl & van der Laan, Erwin, 2001. "Leadtime effects and policy improvement for stochastic inventory control with remanufacturing," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 381-390, May.
    6. 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.
    7. van der Laan, Erwin & Salomon, Marc, 1997. "Production planning and inventory control with remanufacturing and disposal," European Journal of Operational Research, Elsevier, vol. 102(2), pages 264-278, October.
    8. Kiesmuller, G. P., 2003. "A new approach for controlling a hybrid stochastic manufacturing/remanufacturing system with inventories and different leadtimes," European Journal of Operational Research, Elsevier, vol. 147(1), pages 62-71, May.
    9. Erwin van der Laan & Marc Salomon & Rommert Dekker & Luk Van Wassenhove, 1999. "Inventory Control in Hybrid Systems with Remanufacturing," Management Science, INFORMS, vol. 45(5), pages 733-747, May.
    10. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    11. Prahinski, Carol & Kocabasoglu, Canan, 2006. "Empirical research opportunities in reverse supply chains," Omega, Elsevier, vol. 34(6), pages 519-532, December.
    12. van der Laan, Erwin & Salomon, Marc & Dekker, Rommert, 1999. "An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies," European Journal of Operational Research, Elsevier, vol. 115(1), pages 195-214, May.
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