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Applying the minimum relative entropy method for bimodal distribution in a remanufacturing system

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  • Bao, Xing
  • Tang, Ou
  • Ji, Jianhua

Abstract

This paper provides a further investigation of a remanufacturing system studied by Tang et al. [2007. Planned lead time determination in a make-to-order remanufacturing system. International Journal of Production Economics 108, 426-435]. Due to the uncertainty of the disassembly lead time, purchasing lead time and yield rate, the probability density function (PDF) of the lead time for obtaining a component takes a bimodality form. In this paper, the minimum relative entropy (MRE) method, in which high-order moments are utilized, has been applied to approximate the lead time distribution. Numerical result shows that the MRE approach captures well the bimodality property. After reinvestigating the remanufacturing system, we verify the statement in Tang et al. that improving the recovery yield in disassembly does not necessarily improve the system performance. However, more accurate optimal decisions and system performance can only be evaluated by the advanced density function approximation method, such as MRE. Using data in an engine remanufacturing case, we further obtain managerial insights for supporting decision making in labor allocation, supplier selection and process investment.

Suggested Citation

  • Bao, Xing & Tang, Ou & Ji, Jianhua, 2008. "Applying the minimum relative entropy method for bimodal distribution in a remanufacturing system," International Journal of Production Economics, Elsevier, vol. 113(2), pages 969-979, June.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:969-979
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    References listed on IDEAS

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    1. Zellner, Arnold, 2007. "Some aspects of the history of Bayesian information processing," Journal of Econometrics, Elsevier, vol. 138(2), pages 388-404, June.
    2. Tang, Ou & Grubbstrom, Robert W. & Zanoni, Simone, 2007. "Planned lead time determination in a make-to-order remanufacturing system," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 426-435, July.
    3. van der Laan, Erwin & Dekker, Rommert & Salomon, Marc, 1996. "Product remanufacturing and disposal: A numerical comparison of alternative control strategies," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 489-498, August.
    4. Wu, Ximing, 2003. "Calculation of maximum entropy densities with application to income distribution," Journal of Econometrics, Elsevier, vol. 115(2), pages 347-354, August.
    5. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    6. Shibuya, Takeshi & Dohi, Tadashi & Osaki, Shunji, 1998. "Optimal continuous review policies for spare part provisioning with random lead times," International Journal of Production Economics, Elsevier, vol. 55(3), pages 257-271, August.
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    Cited by:

    1. Bao, Xing & Diabat, Ali & Zheng, Zhongliang, 2020. "An ambiguous manager's disruption decisions with insufficient data in recovery phase," International Journal of Production Economics, Elsevier, vol. 221(C).

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