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A model for a production-repair system under a time-varying demand process

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  • Omar, Mohd
  • Yeo, Ivan

Abstract

In this study, we consider a production system that satisfies a continuous time-varying demand for a finished product over a known and finite planning horizon by supplying either new products or repaired used products. Our model assumes that new products are fabricated from a single type of raw material procured from external suppliers, while used products are collected from the customers and then repaired to an 'as new' condition before being sold again. However, we assume that there is no further collection of used products during the period when they are being repaired or shipped. The problem is to determine a joint policy for raw materials procurement, new products production and used products repair such that the total relevant cost of the system is minimized. We propose a numerical solution procedure based on Microsoft Excel Solver's nonlinear mathematical programming function. Then, the procedure is illustrated with a numerical example.

Suggested Citation

  • Omar, Mohd & Yeo, Ivan, 2009. "A model for a production-repair system under a time-varying demand process," International Journal of Production Economics, Elsevier, vol. 119(1), pages 17-23, May.
  • Handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:17-23
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    References listed on IDEAS

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    1. Konstantaras, I. & Papachristos, S., 2008. "A note on: Developing an exact solution for an inventory system with product recovery," International Journal of Production Economics, Elsevier, vol. 111(2), pages 707-712, February.
    2. Mabini, Marilyn C. & Pintelon, Liliane M. & Gelders, Ludo F., 1992. "EOQ type formulations for controlling repairable inventories," International Journal of Production Economics, Elsevier, vol. 28(1), pages 21-33, November.
    3. Richter, Knut & Dobos, Imre, 1999. "Analysis of the EOQ repair and waste disposal problem with integer setup numbers," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 463-467, March.
    4. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    5. Spengler, Th. & Puchert, H. & Penkuhn, T. & Rentz, O., 1997. "Environmental integrated production and recycling management," European Journal of Operational Research, Elsevier, vol. 97(2), pages 308-326, March.
    6. Dobos, Imre & Richter, Knut, 2004. "An extended production/recycling model with stationary demand and return rates," International Journal of Production Economics, Elsevier, vol. 90(3), pages 311-323, August.
    7. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
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    Cited by:

    1. repec:spr:joptap:v:168:y:2016:i:2:d:10.1007_s10957-015-0741-9 is not listed on IDEAS
    2. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "Optimal policy for an inventory system with power demand, backlogged shortages and production rate proportional to demand rate," International Journal of Production Economics, Elsevier, vol. 155(C), pages 163-171.
    3. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    4. Omar, Mohd & Yeo, Ivan, 2014. "A production–repair inventory model with time-varying demand and multiple setups," International Journal of Production Economics, Elsevier, vol. 155(C), pages 398-405.

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