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

Author

Listed:
  • Haolan Liao

    (State Key Laboratory of Advanced Design and Manufacturing for Vehicle Body, Hunan University, Changsha 410082, Hunan, China)

  • Qianwang Deng

    (State Key Laboratory of Advanced Design and Manufacturing for Vehicle Body, Hunan University, Changsha 410082, Hunan, China)

  • Yuanrui Wang

    (State Key Laboratory of Advanced Design and Manufacturing for Vehicle Body, Hunan University, Changsha 410082, Hunan, China)

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.

Suggested Citation

  • Haolan Liao & Qianwang Deng & Yuanrui Wang, 2017. "Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand," Sustainability, MDPI, vol. 9(3), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:338-:d:91399
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    Cited by:

    1. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    2. Yang Hu, 2023. "Perspectives in closed-loop supply chains network design considering risk and uncertainty factors," Papers 2306.04819, arXiv.org.
    3. Assid, M. & Gharbi, A. & Hajji, A., 2020. "Production control of failure-prone manufacturing-remanufacturing systems using mixed dedicated and shared facilities," International Journal of Production Economics, Elsevier, vol. 224(C).
    4. Dingyue Zhang & Xuemei Zhang & Bin Shi & Jian Cao & Gengui Zhou, 2018. "Collection and Remanufacturing of Waste Products under Patent Protection and Government Regulation," Sustainability, MDPI, vol. 10(5), pages 1-22, May.

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