IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v56y2005i3d10.1057_palgrave.jors.2601799.html
   My bibliography  Save this article

Assessing the benefits of remanufacturing option under one-way substitution

Author

Listed:
  • Z P Bayındır

    (Erasmus University Rotterdam)

  • N Erkip

    (Middle East Technical University)

  • R Güllü

    (Middle East Technical University)

Abstract

In this study, we consider a segmented market for a product that can either be manufactured or remanufactured. It is assumed that the remanufactured products can be substituted by the new ones. A steady-state profit model is constructed under certain environmental assumptions on capacity requirements of operations, and revenue and cost schemes. Exact steady-state probabilities of the Markovian model constructed are solved via matrix geometric techniques. An extensive computational study is performed to investigate the conditions under which the utilization of remanufacturing option and the use of one-way substitution policy increase the average expected profit.

Suggested Citation

  • Z P Bayındır & N Erkip & R Güllü, 2005. "Assessing the benefits of remanufacturing option under one-way substitution," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 286-296, March.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:3:d:10.1057_palgrave.jors.2601799
    DOI: 10.1057/palgrave.jors.2601799
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601799
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2601799?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ayres, Robert & Ferrer, Geraldo & Van Leynseele, Tania, 1997. "Eco-efficiency, asset recovery and remanufacturing," European Management Journal, Elsevier, vol. 15(5), pages 557-574, October.
    2. Kiesmuller, Gudrun P. & van der Laan, Erwin A., 2001. "An inventory model with dependent product demands and returns," International Journal of Production Economics, Elsevier, vol. 72(1), pages 73-87, June.
    3. Yehuda Bassok & Ravi Anupindi & Ram Akella, 1999. "Single-Period Multiproduct Inventory Models with Substitution," Operations Research, INFORMS, vol. 47(4), pages 632-642, August.
    4. 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.
    5. Richter, Knut, 1996. "The extended EOQ repair and waste disposal model," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 443-447, August.
    6. Bayindir, Z. Pelin & Erkip, Nesim & Gullu, Refik, 2003. "A model to evaluate inventory costs in a remanufacturing environment," International Journal of Production Economics, Elsevier, vol. 81(1), pages 597-607, January.
    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. Edward Ignall & Arthur F. Veinott, Jr., 1969. "Optimality of Myopic Inventory Policies for Several Substitute Products," Management Science, INFORMS, vol. 15(5), pages 284-304, January.
    9. Inderfurth, K. & de Kok, A. G. & Flapper, S. D. P., 2001. "Product recovery in stochastic remanufacturing systems with multiple reuse options," European Journal of Operational Research, Elsevier, vol. 133(1), pages 130-152, August.
    10. 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.
    11. 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.
    12. L. Beril Toktay & Lawrence M. Wein & Stefanos A. Zenios, 2000. "Inventory Management of Remanufacturable Products," Management Science, INFORMS, vol. 46(11), pages 1412-1426, November.
    13. 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.
    14. Wang, Qinan & Parlar, Mahmut, 1994. "A three-person game theory model arising in stochastic inventory control theory," European Journal of Operational Research, Elsevier, vol. 76(1), pages 83-97, July.
    15. Richter, Knut & Dobos, Imre, 1999. "Analysis of the EOQ repair and waste disposal problem with integer setup numbers," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 463-467, March.
    16. 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.
    17. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
    18. Mahmut Parlar, 1988. "Game theoretic analysis of the substitutable product inventory problem with random demands," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(3), pages 397-409, June.
    19. Richter, Knut & Sombrutzki, Mirko, 2000. "Remanufacturing planning for the reverse Wagner/Whitin models," European Journal of Operational Research, Elsevier, vol. 121(2), pages 304-315, March.
    20. Stephen A. Smith & Narendra Agrawal, 2000. "Management of Multi-Item Retail Inventory Systems with Demand Substitution," Operations Research, INFORMS, vol. 48(1), pages 50-64, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pokharel, Shaligram & Mutha, Akshay, 2009. "Perspectives in reverse logistics: A review," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 175-182.
    2. Shin, Hojung & Park, Soohoon & Lee, Euncheol & Benton, W.C., 2015. "A classification of the literature on the planning of substitutable products," European Journal of Operational Research, Elsevier, vol. 246(3), pages 686-699.
    3. Deflem, Yannick & Van Nieuwenhuyse, Inneke, 2013. "Managing inventories with one-way substitution: A newsvendor analysis," European Journal of Operational Research, Elsevier, vol. 228(3), pages 484-493.
    4. Ghosh, Debabrata & Gouda, Sirish & Shankar, Ravi & Swami, Sanjeev & Thomas, Vinu Cheruvil, 2018. "Strategic decision making under subscription-based contracts for remanufacturing," International Journal of Production Economics, Elsevier, vol. 200(C), pages 134-150.
    5. Chen, Jen-Ming & Chang, Chia-I, 2012. "The co-opetitive strategy of a closed-loop supply chain with remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 387-400.
    6. Liu, Baolong & Papier, Felix, 2022. "Remanufacturing of multi-component systems with product substitution," European Journal of Operational Research, Elsevier, vol. 301(3), pages 896-911.
    7. Piñeyro, Pedro & Viera, Omar, 2010. "The economic lot-sizing problem with remanufacturing and one-way substitution," International Journal of Production Economics, Elsevier, vol. 124(2), pages 482-488, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bayindir, Z.P. & Erkip, N. & Gullu, R., 2003. "Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint," Econometric Institute Research Papers EI 2003-19, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Bayindir, Z. Pelin & Erkip, Nesim & Gullu, Refik, 2003. "A model to evaluate inventory costs in a remanufacturing environment," International Journal of Production Economics, Elsevier, vol. 81(1), pages 597-607, January.
    3. Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
    4. Nenes, George & Panagiotidou, Sofia & Dekker, Rommert, 2010. "Inventory control policies for inspection and remanufacturing of returns: A case study," International Journal of Production Economics, Elsevier, vol. 125(2), pages 300-312, June.
    5. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
    6. V. Daniel R. Guide & Vaidyanathan Jayaraman & Rajesh Srivastava & W. C. Benton, 2000. "Supply-Chain Management for Recoverable Manufacturing Systems," Interfaces, INFORMS, vol. 30(3), pages 125-142, June.
    7. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    8. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    9. Zhang, Jian & Zhang, Juliang & Hua, Guowei, 2016. "Multi-period inventory games with information update," International Journal of Production Economics, Elsevier, vol. 174(C), pages 119-127.
    10. Pokharel, Shaligram & Mutha, Akshay, 2009. "Perspectives in reverse logistics: A review," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 175-182.
    11. Zhou, Li & Xie, Jiaping & Gu, Xiaoyu & Lin, Yong & Ieromonachou, Petros & Zhang, Xiaole, 2016. "Forecasting return of used products for remanufacturing using Graphical Evaluation and Review Technique (GERT)," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 315-324.
    12. Jian Yang & Boaz Golany & Gang Yu, 2005. "A concave‐cost production planning problem with remanufacturing options," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(5), pages 443-458, August.
    13. 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.
    14. Mahadevan, B. & Pyke, David F. & Fleischmann, Moritz, 2003. "Periodic review, push inventory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 151(3), pages 536-551, December.
    15. Felix T.S. Chan & Nan Li & S.H. Chung & Mozafar Saadat, 2017. "Management of sustainable manufacturing systems-a review on mathematical problems," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1210-1225, February.
    16. Li, Jianzhi & González, Miguel & Zhu, Yun, 2009. "A hybrid simulation optimization method for production planning of dedicated remanufacturing," International Journal of Production Economics, Elsevier, vol. 117(2), pages 286-301, February.
    17. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.
    18. Gregory A. DeCroix, 2006. "Optimal Policy for a Multiechelon Inventory System with Remanufacturing," Operations Research, INFORMS, vol. 54(3), pages 532-543, June.
    19. van der Laan, Erwin A. & Teunter, Ruud H., 2006. "Simple heuristics for push and pull remanufacturing policies," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1084-1102, December.
    20. Sebnem Ahiska, S. & King, Russell E., 2010. "Inventory optimization in a one product recoverable manufacturing system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 11-19, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:56:y:2005:i:3:d:10.1057_palgrave.jors.2601799. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.