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A flexibly structured lot sizing heuristic for a static remanufacturing system

Listed author(s):
  • 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%.

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File URL: http://www.sciencedirect.com/science/article/pii/S0305048313000935
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Article provided by Elsevier in its journal Omega.

Volume (Year): 44 (2014)
Issue (Month): C ()
Pages: 21-31

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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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  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.
  2. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
  3. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
  4. Francas, David & Minner, Stefan, 2009. "Manufacturing network configuration in supply chains with product recovery," Omega, Elsevier, vol. 37(4), pages 757-769, August.
  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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