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A flexibly structured lot sizing heuristic for a static remanufacturing system

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  • Schulz, Tobias
  • Voigt, Guido

Abstract

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/j.omega.2013.09.003
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    References listed on IDEAS

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    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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    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.
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    Cited by:

    1. 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.
    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. 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.
    5. Mitra, Subrata, 2016. "Models to explore remanufacturing as a competitive strategy under duopoly," Omega, Elsevier, vol. 59(PB), pages 215-227.
    6. 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.
    7. 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.

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