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Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint

Author

Listed:
  • Bayindir, Z.P.
  • Erkip, N.
  • Gullu, R.

Abstract

In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. It is assumed that remanufactured products can be substituted by the manufactured ones. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of the joint manufacturing/remanufactruing facility.

Suggested Citation

  • Bayindir, Z.P. & Erkip, N. & Gullu, R., 2003. "Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint," Econometric Institute Research Papers EI 2003-19, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  • Handle: RePEc:ems:eureir:1719
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    References listed on IDEAS

    as
    1. 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.
    2. Richter, Knut & Sombrutzki, Mirko, 2000. "Remanufacturing planning for the reverse Wagner/Whitin models," European Journal of Operational Research, Elsevier, vol. 121(2), pages 304-315, March.
    3. van der Laan, Erwin & Dekker, Rommert & Salomon, Marc & Ridder, Ad, 1996. "An (s, Q) inventory model with remanufacturing and disposal," International Journal of Production Economics, Elsevier, vol. 46(1), pages 339-350, December.
    4. Wang, Qinan & Parlar, Mahmut, 1994. "A three-person game theory model arising in stochastic inventory control theory," European Journal of Operational Research, Elsevier, vol. 76(1), pages 83-97, July.
    5. 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.
    6. 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.
    7. Richter, Knut, 1996. "The EOQ repair and waste disposal model with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 95(2), pages 313-324, December.
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