Inventory 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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Paper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number
EI 2004-34 Revision_Date: 2009-07-29.
Laan, E.A. van der & Teunter, R.H., 2004.
"Simple heuristics for push and pull remanufacturing policies,"
Research Paper
ERS-2004-090-LIS Revision, 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 Uni.
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Teunter, R.H. & Laan, E.A. van der & Vlachos, D., 2002.
"Inventory strategies for systems with fast remanufacturing,"
Research Paper
ERS-2002-77-LIS Revision_, 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 Uni.
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Other versions:
Mahadevan, B. & Pyke, D.F. & Fleischmann, M., 2002.
"Periodic Review, Push Inventory Policies for Remanufacturing,"
Research Paper
ERS-2002-35-LIS Revision_, 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 Uni.
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Corbacıoğlu, U. & Laan, E.A. van der, 2005.
"Setting the holding cost rates in a multi-product system with remanufacturing,"
Research Paper
ERS-2005-072-LIS Revision, 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 Uni.
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