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Remanufacturing lotsizing with stochastic lead-time resulting from stochastic quality of returns

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  • Christos Zikopoulos

Abstract

In the current paper, we model the duration of recovery of used products as a variable that depends on each unit’s quality. Because of the uncertainty related to returned units’ quality, the necessary time for the recovery of a lot is a random variable. We provide analytical expressions for the optimisation of recovery planning decisions under different assumptions regarding quality and demand characteristics. In addition, through an extensive numerical study, we examine the impact of the different parameters on the necessity to consider explicitly the stochastic nature of recovery lead-time. Moreover, we discuss the advisability of establishing procedures for the classification of returns according to their quality condition. As our findings indicate, overlooking quality uncertainty can increase related costs considerably because of poor process coordination. Furthermore, ignoring variability may result in undue overestimation of the efficiency of lot-sizing policies. On the other hand, the establishment of quality assessment procedures is worthwhile only when the stochastic behaviour of quality cannot be taken into account explicitly.

Suggested Citation

  • Christos Zikopoulos, 2017. "Remanufacturing lotsizing with stochastic lead-time resulting from stochastic quality of returns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(6), pages 1565-1587, March.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:6:p:1565-1587
    DOI: 10.1080/00207543.2016.1150616
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    Cited by:

    1. Mehmood Khan & Matloub Hussain & Leopoldo Eduardo Cárdenas-Barrón, 2017. "Learning and screening errors in an EPQ inventory model for supply chains with stochastic lead time demands," International Journal of Production Research, Taylor & Francis Journals, vol. 55(16), pages 4816-4832, August.
    2. Dominguez, Roberto & Cannella, Salvatore & Ponte, Borja & Framinan, Jose M., 2020. "On the dynamics of closed-loop supply chains under remanufacturing lead time variability," Omega, Elsevier, vol. 97(C).
    3. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    4. S. Sarkar & B. C. Giri, 2020. "A vendor–buyer integrated inventory system with variable lead time and uncertain market demand," Operational Research, Springer, vol. 20(1), pages 491-515, March.
    5. Ponte, Borja & Cannella, Salvatore & Dominguez, Roberto & Naim, Mohamed M. & Syntetos, Aris A., 2021. "Quality grading of returns and the dynamics of remanufacturing," International Journal of Production Economics, Elsevier, vol. 236(C).
    6. Jean D. Kabongo, 2019. "Sustainable development and research and development intensity in U.S. manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 556-566, May.

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