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Dynamic performance of a hybrid inventory system with a Kanban policy in remanufacturing process

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  • Zhou, Li
  • Naim, Mohamed M.
  • Ou Tang
  • Towill, Denis R.

Abstract

In this paper we study a hybrid system with both manufacturing and remanufacturing. The inventory control strategy we use in the manufacturing loop is an automatic pipeline, inventory and order based production control system (APIOBPCS). In the remanufacturing loop we employ a Kanban policy to represent a typical pull system. The methodology adopted uses control theory and simulation. The aim of the research is to analyse the dynamic (as distinct from the static) performance of the specified hybrid system. Dynamics have implications on total costs in terms of inventory holding, capacity utilisation and customer service failures. We analyse the parameter settings to find preferred "nominal", "fast" and "slow" values in terms of system dynamics performance criteria such as rise time, settling time and overshoot. Based on these parameter settings, we investigate the robustness of the system to changes in return yield and the manufacturing/remanufacturing lead time. Our results clearly show that the system is robust with respect to the system dynamics performance and the remanufacturing process can help to improve system dynamics performance. Thus, the perceived benefits of remanufacturing of products, both environmentally and economically, as quoted in the literature are found not to be detrimental to system dynamics performance when a Kanban policy is used to control the remanufacturing process.

Suggested Citation

  • Zhou, Li & Naim, Mohamed M. & Ou Tang & Towill, Denis R., 2006. "Dynamic performance of a hybrid inventory system with a Kanban policy in remanufacturing process," Omega, Elsevier, vol. 34(6), pages 585-598, December.
  • Handle: RePEc:eee:jomega:v:34:y:2006:i:6:p:585-598
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    References listed on IDEAS

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    1. Disney, S. M. & Towill, D. R., 2003. "The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains," International Journal of Production Economics, Elsevier, vol. 85(2), pages 199-215, August.
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    Citations

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    Cited by:

    1. Georgiadis, Patroklos & Michaloudis, Charalampos, 2012. "Real-time production planning and control system for job-shop manufacturing: A system dynamics analysis," European Journal of Operational Research, Elsevier, vol. 216(1), pages 94-104.
    2. Dobos, Imre, 2011. "The analysis of bullwhip effect in a HMMS-type supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 250-256, May.
    3. Lin, J. & Naim, M.M. & Purvis, L. & Gosling, J., 2017. "The extension and exploitation of the inventory and order based production control system archetype from 1982 to 2015," International Journal of Production Economics, Elsevier, vol. 194(C), pages 135-152.
    4. Zhou, Li & Naim, Mohamed M. & Disney, Stephen M., 2017. "The impact of product returns and remanufacturing uncertainties on the dynamic performance of a multi-echelon closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 487-502.
    5. Schulz, Tobias & Voigt, Guido, 2014. "A flexibly structured lot sizing heuristic for a static remanufacturing system," Omega, Elsevier, vol. 44(C), pages 21-31.
    6. Sagawa, Juliana Keiko & Nagano, Marcelo Seido & Speranza Neto, Mauro, 2017. "A closed-loop model of a multi-station and multi-product manufacturing system using bond graphs and hybrid controllers," European Journal of Operational Research, Elsevier, vol. 258(2), pages 677-691.
    7. Ponte, Borja & Naim, Mohamed M. & Syntetos, Aris A., 2019. "The value of regulating returns for enhancing the dynamic behaviour of hybrid manufacturing-remanufacturing systems," European Journal of Operational Research, Elsevier, vol. 278(2), pages 629-645.
    8. 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.
    9. Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2016. "Closed-loop supply chains: What reverse logistics factors influence performance?," International Journal of Production Economics, Elsevier, vol. 175(C), pages 35-49.

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