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Capacitated dynamic production and remanufacturing planning under demand and return uncertainty

Author

Listed:
  • Timo Hilger

    (University of Cologne)

  • Florian Sahling

    (Leibniz Universität Hannover)

  • Horst Tempelmeier

    (University of Cologne)

Abstract

This paper considers a stochastic dynamic multi-product capacitated lot sizing problem with remanufacturing. Finished goods come from two sources: a standard production resource using virgin material and a remanufacturing resource that processes recoverable returns. Both the period demands and the inflow of returns are random. For this integrated stochastic production and remanufacturing problem, we propose a nonlinear model formulation that is approximated by sample averages and a piecewise linear approximation model. In the first approach, the expected values of random variables are replaced by sample averages. The idea of the piecewise linear approximation model is to replace the nonlinear functions with piecewise linear functions. The resulting mixed-integer linear programs are solved to create robust (re)manufacturing plans.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:orspec:v:38:y:2016:i:4:d:10.1007_s00291-016-0441-3
    DOI: 10.1007/s00291-016-0441-3
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. 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.
    4. 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.
    5. Yongbo Li & Devika Kannan & P. C. Jha & Kiran Garg & Jyoti Darbari & Neha Agarwal, 2023. "Design of a multi echelon product recovery embeded reverse logistics network for multi products and multi periods," Annals of Operations Research, Springer, vol. 323(1), pages 131-152, April.
    6. Stefan Helber & Ton Kok & Heinrich Kuhn & Michael Manitz & Andrea Matta & Raik Stolletz, 2019. "Quantitative approaches in production management," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 867-870, December.

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