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The economic lot-sizing problem with remanufacturing and one-way substitution

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  • Piñeyro, Pedro
  • Viera, Omar

Abstract

We investigate a lot-sizing problem with different demand streams for new and remanufactured items, in which the demand for remanufactured items can be also satisfied by new products, but not vice versa. We provide a mathematical model for the problem and demonstrate it is NP-hard, even under particular cost structures. We also show the key role that remanufacturing plays in the problem resolution. With the aim of finding a near optimal solution of the problem, we develop and evaluate a Tabu-Search-based procedure. The numerical experiment carried out confirms the success of the procedure for different cases.

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  • Piñeyro, Pedro & Viera, Omar, 2010. "The economic lot-sizing problem with remanufacturing and one-way substitution," International Journal of Production Economics, Elsevier, vol. 124(2), pages 482-488, April.
    • Handle: RePEc:eee:proeco:v:124:y:2010:i:2:p:482-488
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    2. Zhang, Zhi-Hai & Jiang, Hai & Pan, Xunzhang, 2012. "A Lagrangian relaxation based approach for the capacitated lot sizing problem in closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 140(1), pages 249-255.
    3. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-delivery control policy for an unreliable manufacturing system and multiple retailers," International Journal of Production Economics, Elsevier, vol. 245(C).
    4. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.
    5. Timo Hilger & Florian Sahling & Horst Tempelmeier, 2016. "Capacitated dynamic production and remanufacturing planning under demand and return uncertainty," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(4), pages 849-876, October.
    6. Attila, Öykü Naz & Agra, Agostinho & Akartunalı, Kerem & Arulselvan, Ashwin, 2021. "Robust formulations for economic lot-sizing problem with remanufacturing," European Journal of Operational Research, Elsevier, vol. 288(2), pages 496-510.
    7. Malolan Sundararaman & Mathirajan Muthu, 2020. "Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1244-1280, December.
    8. Shin, Hojung & Park, Soohoon & Lee, Euncheol & Benton, W.C., 2015. "A classification of the literature on the planning of substitutable products," European Journal of Operational Research, Elsevier, vol. 246(3), pages 686-699.
    9. Piñeyro, Pedro & Viera, Omar, 2014. "Note on “The economic lot-sizing problem with remanufacturing and one-way substitution”," International Journal of Production Economics, Elsevier, vol. 156(C), pages 167-168.
    10. Liao, Gwo-Liang & Sheu, Shey-Huei, 2011. "Economic production quantity model for randomly failing production process with minimal repair and imperfect maintenance," International Journal of Production Economics, Elsevier, vol. 130(1), pages 118-124, March.
    11. Syed Ali, Sharifah Aishah & Doostmohammadi, Mahdi & Akartunalı, Kerem & van der Meer, Robert, 2018. "A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups," International Journal of Production Economics, Elsevier, vol. 203(C), pages 276-285.
    12. Lin, Yizhong & Leung, Janny M.Y. & Zhang, Lianmin & Gu, Jia-Wen, 2020. "Single-item repairable inventory system with stochastic new and warranty demands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    13. Sifaleras, Angelo & Konstantaras, Ioannis & Mladenović, Nenad, 2015. "Variable neighborhood search for the economic lot sizing problem with product returns and recovery," International Journal of Production Economics, Elsevier, vol. 160(C), pages 133-143.
    14. Mokhtari, Hadi, 2018. "Economic order quantity for joint complementary and substitutable items," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 154(C), pages 34-47.
    15. Mahmutoğulları, Özlem & Yaman, Hande, 2023. "A Branch-and-Cut Algorithm for the Inventory Routing Problem with Product Substitution," Omega, Elsevier, vol. 115(C).

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