Inventory control policies for inspection and remanufacturing of returns: A case study
When both purchase of new products and remanufacturing of returned products constitute options for a company, it faces a trade-off between the long purchase lead times and the high purchase costs versus the uncertainties generated by the unknown a priori quantity and quality of returns. In other words, although the remanufacturing of returns is generally a faster and less expensive alternative for a company, compared to the procurement of new products, both quality and quantity of returns are unfortunately highly stochastic. In such cases, companies have to select the ordering and remanufacturing policy so as to maximize their performance according to specific criteria, e.g., minimize the expected cost or maximize the expected profit. In this paper we investigate alternative policies for a system where both demand of new products and returns of used products are stochastic. The expected cost of each policy for a real application problem is computed and the best policy is proposed. A numerical investigation is also conducted in order to identify the best policy under various alternative scenarios.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ketzenberg, M.E. & van der Laan, E.A. & Teunter, R.H., 2004. "The Value of Information in Reverse Logistics," ERIM Report Series Research in Management ERS-2004-053-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Tagaras, George & Zikopoulos, Christos, 2008. "Optimal location and value of timely sorting of used items in a remanufacturing supply chain with multiple collection sites," International Journal of Production Economics, Elsevier, vol. 115(2), pages 424-432, October.
- Teunter, Ruud H. & Vlachos, Dimitrios, 2002. "On the necessity of a disposal option for returned items that can be remanufactured," International Journal of Production Economics, Elsevier, vol. 75(3), pages 257-266, February.
- van der Laan, Erwin & Salomon, Marc, 1997. "Production planning and inventory control with remanufacturing and disposal," European Journal of Operational Research, Elsevier, vol. 102(2), pages 264-278, October.
- Ferrer, Geraldo, 2003. "Yield information and supplier responsiveness in remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 149(3), pages 540-556, September.
- 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.
- L. Beril Toktay & Lawrence M. Wein & Stefanos A. Zenios, 2000. "Inventory Management of Remanufacturable Products," Management Science, INFORMS, vol. 46(11), pages 1412-1426, November.
- 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.
- Guide, V. Daniel R. & Kraus, Mark E. & Srivastava, Rajesh, 1997. "Scheduling policies for remanufacturing," International Journal of Production Economics, Elsevier, vol. 48(2), pages 187-204, January.
- Kiesmuller, Gudrun P. & van der Laan, Erwin A., 2001.
"An inventory model with dependent product demands and returns,"
International Journal of Production Economics,
Elsevier, vol. 72(1), pages 73-87, June.
- van der Laan, E.A. & Kiesmueller, G.P., 2001. "An Inventory Model with Dependent Product Demands and Returns," ERIM Report Series Research in Management ERS-2001-16-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- van der Laan, Erwin & Salomon, Marc & Dekker, Rommert, 1999. "An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies," European Journal of Operational Research, Elsevier, vol. 115(1), pages 195-214, May.
- Kiesmuller, G. P., 2003. "Optimal control of a one product recovery system with leadtimes," International Journal of Production Economics, Elsevier, vol. 81(1), pages 333-340, January.
- Ayres, Robert & Ferrer, Geraldo & Van Leynseele, Tania, 1997. "Eco-efficiency, asset recovery and remanufacturing," European Management Journal, Elsevier, vol. 15(5), pages 557-574, October.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:125:y:2010:i:2:p:300-312. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.