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Life cycle inventory policy characterizations for a single-product recoverable system

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  • Ahiska, S. Sebnem
  • King, Russell E.

Abstract

This paper investigates the optimal inventory policies over the life cycle of a remanufacturable product. The product is produced through manufacturing or remanufacturing. Benefiting from the long-run optimal policies found through Markov decision analysis, the optimal or near-optimal policy characterizations with practical structure are determined for every life cycle stage under several setup cost configurations. The effects of changes in the demand and return rates on the optimal inventory policies are investigated through these policies. Further, a performance comparison with a PULL strategy is provided. The performance of these long-run policies is evaluated as well in a finite-horizon setting, and the importance of frequent policy revision over the product life cycle is illustrated numerically.

Suggested Citation

  • Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    • Handle: RePEc:eee:proeco:v:124:y:2010:i:1:p:51-61
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    Cited by:

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    2. Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    3. Seifert, Ralf W. & Tancrez, Jean-Sébastien & Biçer, Işık, 2016. "Dynamic product portfolio management with life cycle considerations," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 71-83.
    4. Kilic, Onur A. & Tunc, Huseyin, 2019. "Heuristics for the stochastic economic lot sizing problem with remanufacturing under backordering costs," European Journal of Operational Research, Elsevier, vol. 276(3), pages 880-892.
    5. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
    6. Kilic, Onur A. & Tunc, Huseyin & Tarim, S. Armagan, 2018. "Heuristic policies for the stochastic economic lot sizing problem with remanufacturing under service level constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1102-1109.
    7. Wu, Shaomin & Longhurst, Phil, 2011. "Optimising age-replacement and extended non-renewing warranty policies in lifecycle costing," International Journal of Production Economics, Elsevier, vol. 130(2), pages 262-267, April.
    8. Ahiska, S. Sebnem & Appaji, Samyuktha R. & King, Russell E. & Warsing, Donald P., 2013. "A Markov decision process-based policy characterization approach for a stochastic inventory control problem with unreliable sourcing," International Journal of Production Economics, Elsevier, vol. 144(2), pages 485-496.

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