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Inventory control models for disassembly systems with lost sales

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  • Son, Dong-Hoon
  • Kim, Hwa-Joong
  • Kim, Kwang-Tae

Abstract

Disassembly systems retrieve marketable parts from end-of-life (EOL) products, a crucial operation in the reverse supply chain. Managing such systems is challenging due to limited EOL returns and uncertain demand for disassembled parts, which is particularly critical for the automobile disassembly industry in Korea. Inspired by Korean practices of avoiding EOL inventory buildup, this study considers an inventory control problem that determines the quantities for disassembling and disposing of EOL automobiles to meet the demand for parts. The objective is to minimize the costs of setup, holding inventory, lost sales, and parts disposal. This study initially develops a deterministic model and then extends it to address stochastic demand for disassembled parts. Moreover, it introduces a bisection search algorithm to solve the stochastic model, considering a normal distribution for parts demand. Numerical experiments are conducted to provide insights into establishing sustainable automobile disassembly systems.

Suggested Citation

  • Son, Dong-Hoon & Kim, Hwa-Joong & Kim, Kwang-Tae, 2025. "Inventory control models for disassembly systems with lost sales," International Journal of Production Economics, Elsevier, vol. 290(C).
    • Handle: RePEc:eee:proeco:v:290:y:2025:i:c:s0925527325002580
    DOI: 10.1016/j.ijpe.2025.109773
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    References listed on IDEAS

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