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Simultaneous reassembly and procurement planning in assemble-to-order remanufacturing systems

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  • Oh, Yosep
  • Behdad, Sara

Abstract

Assemble-to-Order (ATO) remanufacturing systems deal with decision-making on the number and type of modules ready for reassembly, while managing a high degree of uncertainty in the quantity of incoming end-of-life products. Remanufacturers who adopt the waste stream system often passively accept an unpredictable amount of collected supply in their systems. Also, they often keep various items in their inventory for future reassembly purposes despite the parts depreciation which leverages part values in the second-hand market. To overcome these challenges, this paper proposes a graph-based optimization model for simultaneous reassembly and procurement planning with the aim of determining the type and number of parts that should be reassembled and procured, considering the market demand for both cores and subassemblies. This study articulates the problem employing a network flow graph and integer linear programming (ILP). In addition, the study suggests two key concepts: (1) disposal point, and (2) reassembly threshold. Considering recycling benefits and holding costs, the disposal point helps remanufacturers make proper decisions on the time that they have to dispose of parts that are stored in their inventory. The reassembly threshold makes remanufacturers recognize a tipping point for reassembly process cost where they have to keep parts rather than reassemble them. The application of the proposed method is illustrated using a smartphone example.

Suggested Citation

  • Oh, Yosep & Behdad, Sara, 2017. "Simultaneous reassembly and procurement planning in assemble-to-order remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 184(C), pages 168-178.
  • Handle: RePEc:eee:proeco:v:184:y:2017:i:c:p:168-178
    DOI: 10.1016/j.ijpe.2016.12.009
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    References listed on IDEAS

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    Cited by:

    1. Yeu-Shiang Huang & Hau-Wen Lo & Jyh-Wen Ho, 2021. "Effects of component commonality and perishability on inventory control in assemble-to-order systems," Operational Research, Springer, vol. 21(1), pages 205-229, March.
    2. Yaping Ren & Xinyu Lu & Hongfei Guo & Zhaokang Xie & Haoyang Zhang & Chaoyong Zhang, 2023. "A Review of Combinatorial Optimization Problems in Reverse Logistics and Remanufacturing for End-of-Life Products," Mathematics, MDPI, vol. 11(2), pages 1-24, January.
    3. Ioannis G. Fountoukidis & Ioannis E. Antoniou & Nikos C. Varsakelis, 2023. "Competitive conditions in the public procurement markets: an investigation with network analysis," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 347-368, June.

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