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A flexibly structured lot sizing heuristic for a static remanufacturing system


  • Schulz, Tobias
  • Voigt, Guido


An effective planning of lot sizes is a key strategy to efficiently manage a combined manufacturing/remanufacturing system in the presence of substantial setup costs. Due to its complex interdependencies, optimal policies and solutions have not been identified so far, but several heuristic approaches have been analyzed in recent contributions. The main heuristic shortcuts are forcing equally sized lot sizes over the planning horizon as well as imposing a specific cycle structure, i.e., a sequence of manufacturing batches is followed by a sequence of remanufacturing batches. We are instead proposing a flexibly structured heuristic that allows for differently sized remanufacturing batches. We show in a comprehensive numerical study that our approach outperforms other existing approaches in more than half of all instances by up to 17%.

Suggested Citation

  • Schulz, Tobias & Voigt, Guido, 2014. "A flexibly structured lot sizing heuristic for a static remanufacturing system," Omega, Elsevier, vol. 44(C), pages 21-31.
  • Handle: RePEc:eee:jomega:v:44:y:2014:i:c:p:21-31
    DOI: 10.1016/

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    References listed on IDEAS

    1. Konstantaras, I. & Skouri, K., 2010. "Lot sizing for a single product recovery system with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 203(2), pages 326-335, June.
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    5. 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.
    6. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    7. Feng, Yan & Viswanathan, S., 2011. "A new lot-sizing heuristic for manufacturing systems with product recovery," International Journal of Production Economics, Elsevier, vol. 133(1), pages 432-438, September.
    8. Barker, Theresa J. & Zabinsky, Zelda B., 2011. "A multicriteria decision making model for reverse logistics using analytical hierarchy process," Omega, Elsevier, vol. 39(5), pages 558-573, October.
    9. Choi, Dae-Won & Hwang, Hark & Koh, Shie-Gheun, 2007. "A generalized ordering and recovery policy for reusable items," European Journal of Operational Research, Elsevier, vol. 182(2), pages 764-774, October.
    10. Mitra, Subrata, 2009. "Analysis of a two-echelon inventory system with returns," Omega, Elsevier, vol. 37(1), pages 106-115, February.
    11. Teunter, Ruud H. & van der Laan, Erwin & Inderfurth, Karl, 2000. "How to set the holding cost rates in average cost inventory models with reverse logistics?," Omega, Elsevier, vol. 28(4), pages 409-415, August.
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    Cited by:

    1. repec:taf:tprsxx:v:55:y:2017:i:1:p:118-129 is not listed on IDEAS
    2. Yu-Chung Tsao & Vu-Thuy Linh & Jye-Chyi Lu & Vincent Yu, 0. "A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-13.
    3. Katsunori Kume & Takao Fujiwara, 2016. "Production Flexibility of Real Options in Daily Supply Chain," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(3), pages 249-264, September.
    4. Voigt, Guido & Schulz, Tobias, 2015. "Note on “Heuristics with guaranteed performance bounds for a manufacturing system with product recovery”," European Journal of Operational Research, Elsevier, vol. 241(2), pages 575-578.
    5. repec:spr:joinma:v:29:y:2018:i:3:d:10.1007_s10845-017-1296-4 is not listed on IDEAS
    6. Kozlovskaya, Nadezhda & Pakhomova, Nadezhda & Richter, Knut, 2015. "Complete solution of the extended EOQ repair and waste disposal model with switching costs," Discussion Papers 376, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    7. Hariga, Moncer & As’ad, Rami & Khan, Zeinab, 2017. "Manufacturing-remanufacturing policies for a centralized two stage supply chain under consignment stock partnership," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 362-374.
    8. Mitra, Subrata, 2016. "Models to explore remanufacturing as a competitive strategy under duopoly," Omega, Elsevier, vol. 59(PB), pages 215-227.
    9. Kozlovskaya, Nadezhda & Pakhomova, Nadezhda & Richter, Knut, 2016. "A general production and recovery EOQ model with stationary demand and return rates," Discussion Papers 378, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.


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