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A production rate control policy for stochastic repair and remanufacturing systems

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  • Pellerin, Robert
  • Sadr, Javad
  • Gharbi, Ali
  • Malhamé, Roland

Abstract

We consider the control of a manufacturing system responding to planned demand at the end of the expected life of each individual piece of equipment and unplanned demand triggered by a major equipment failure. The difficulty of controlling this type of production system resides in the variable nature of the remanufacturing process. In practice, remanufacturing operations for planned demand can be executed at different rates, referring to different component replacement and repair strategies. We formulate this problem as a multi-level control problem and propose a suboptimal control policy. The proposed control policy is described by inventory thresholds triggering the use of different execution modes. Determination of the control policy parameters is based on parameter optimization of analytical cost expressions. A numerical example based on a real case is presented. Our analysis demonstrates that the use of the proposed control approach can lead to a significant reduction in the total average cost, as compared to current practices.

Suggested Citation

  • Pellerin, Robert & Sadr, Javad & Gharbi, Ali & Malhamé, Roland, 2009. "A production rate control policy for stochastic repair and remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 121(1), pages 39-48, September.
  • Handle: RePEc:eee:proeco:v:121:y:2009:i:1:p:39-48
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    References listed on IDEAS

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    1. Inderfurth, Karl & van der Laan, Erwin, 2001. "Leadtime effects and policy improvement for stochastic inventory control with remanufacturing," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 381-390, May.
    2. Giutini, Ron & Gaudette, Kevin, 2003. "Remanufacturing: The next great opportunity for boosting US productivity," Business Horizons, Elsevier, vol. 46(6), pages 41-48.
    3. Guide, V. Daniel R. & Souza, Gilvan C. & van der Laan, Erwin, 2005. "Performance of static priority rules for shared facilities in a remanufacturing shop with disassembly and reassembly," European Journal of Operational Research, Elsevier, vol. 164(2), pages 341-353, July.
    4. Li, Jianzhi & González, Miguel & Zhu, Yun, 2009. "A hybrid simulation optimization method for production planning of dedicated remanufacturing," International Journal of Production Economics, Elsevier, vol. 117(2), pages 286-301, February.
    5. Tang, Ou & Grubbstrom, Robert W., 2005. "Considering stochastic lead times in a manufacturing/remanufacturing system with deterministic demands and returns," International Journal of Production Economics, Elsevier, vol. 93(1), pages 285-300, January.
    6. 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.
    7. Mahadevan, B. & Pyke, David F. & Fleischmann, Moritz, 2003. "Periodic review, push inventory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 151(3), pages 536-551, December.
    8. Kiesmuller, G. P., 2003. "A new approach for controlling a hybrid stochastic manufacturing/remanufacturing system with inventories and different leadtimes," European Journal of Operational Research, Elsevier, vol. 147(1), pages 62-71, May.
    9. Guide, V. Daniel R. & Srivastava, Rajesh, 1997. "Repairable inventory theory: Models and applications," European Journal of Operational Research, Elsevier, vol. 102(1), pages 1-20, October.
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    Citations

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    Cited by:

    1. Liu, Gia-Shie, 2011. "Dynamic group instantaneous replacement policies for unreliable Markovian service systems," International Journal of Production Economics, Elsevier, vol. 130(2), pages 203-217, April.
    2. Pokharel, Shaligram & Liang, Yijiong, 2012. "A model to evaluate acquisition price and quantity of used products for remanufacturing," International Journal of Production Economics, Elsevier, vol. 138(1), pages 170-176.
    3. Hlioui, Rached & Gharbi, Ali & Hajji, Adnène, 2015. "Replenishment, production and quality control strategies in three-stage supply chain," International Journal of Production Economics, Elsevier, vol. 166(C), pages 90-102.
    4. Hajji, A. & Mhada, F. & Gharbi, A. & Pellerin, R. & Malhamé, R., 2011. "Integrated product specifications and productivity decision making in unreliable manufacturing systems," International Journal of Production Economics, Elsevier, vol. 129(1), pages 32-42, January.

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