IDEAS home Printed from https://ideas.repec.org/p/ems/eureri/1786.html
   My bibliography  Save this paper

Simple heuristics for push and pull remanufacturing policies

Author

Listed:
  • van der Laan, E.A.
  • Teunter, R.H.

Abstract

Inventory policies for joint remanufacturing and manufacturing have recently received much attention. Most efforts, though, were related to (optimal) policy structures and numerical optimization, rather than closed form expressions for calculating near optimal policy parameters. The focus of this paper is on the latter. We analyze an inventory system with unit product returns and demands where remanufacturing is the cheaper alternative for manufacturing. Manufacturing is also needed, however, since there are less returns than demands. The cost structure consists of setup costs, holding costs, and backorder costs. Manufacturing and remanufacturing orders have non-zero lead times. To control the system we use certain extensions of the familiar (s,Q) policy, called push and pull remanufacturing policies. For all policies we present simple, closed form formulae for approximating the optimal policy parameters under a cost minimization objective. In an extensive numerical study we show that the proposed formulae lead to near-optimal policy parameters.

Suggested Citation

  • van der Laan, E.A. & Teunter, R.H., 2004. "Simple heuristics for push and pull remanufacturing policies," ERIM Report Series Research in Management ERS-2004-090-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.
  • Handle: RePEc:ems:eureri:1786
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/1786/ERS%202004%20090%20LIS.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. G P Kiesmüller & S Minner, 2003. "Simple expressions for finding recovery system inventory control parameter values," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(1), pages 83-88, January.
    2. 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.
    3. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    4. 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.
    5. Inderfurth, Karl & van der Laan, Erwin, 2001. "Leadtime effects and policy improvement for stochastic inventory control with remanufacturing," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 381-390, May.
    6. R Teunter & E van der Laan & D Vlachos, 2004. "Inventory strategies for systems with fast remanufacturing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 475-484, May.
    7. 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.
    8. Erwin van der Laan & Marc Salomon & Rommert Dekker & Luk Van Wassenhove, 1999. "Inventory Control in Hybrid Systems with Remanufacturing," Management Science, INFORMS, vol. 45(5), pages 733-747, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sebnem Ahiska, S. & King, Russell E., 2010. "Inventory optimization in a one product recoverable manufacturing system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 11-19, March.
    2. Konstantaras, I. & Skouri, K., 2010. "Lot sizing for a single product recovery system with variable setup numbers," European Journal of Operational Research, Elsevier, vol. 203(2), pages 326-335, June.
    3. Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    4. Hamza Boudhar & Mohammed Dahane & Nidhal Rezg, 2017. "New dynamic heuristic for the optimization of opportunities to use new and remanufactured spare part in stochastic degradation context," Journal of Intelligent Manufacturing, Springer, vol. 28(2), pages 437-454, February.
    5. Huynh, Candice H. & So, Kut C. & Gurnani, Haresh, 2016. "Managing a closed-loop supply system with random returns and a cyclic delivery schedule," European Journal of Operational Research, Elsevier, vol. 255(3), pages 787-796.
    6. 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.
    7. Feng, Yan & Viswanathan, S., 2014. "Heuristics with guaranteed performance bounds for a manufacturing system with product recovery," European Journal of Operational Research, Elsevier, vol. 232(2), pages 322-329.
    8. Hsueh, Che-Fu, 2011. "An inventory control model with consideration of remanufacturing and product life cycle," International Journal of Production Economics, Elsevier, vol. 133(2), pages 645-652, October.
    9. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    10. 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.
    11. Mathijn Retel Helmrich & Raf Jans & Wilco van den Heuvel & Albert Wagelmans, 2014. "Economic lot-sizing with remanufacturing: complexity and efficient formulations," IISE Transactions, Taylor & Francis Journals, vol. 46(1), pages 67-86.
    12. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    13. Lin, Junyi & Zhou, Li & Spiegler, Virginia L.M. & Naim, Mohamed M. & Syntetos, Aris, 2022. "Push or Pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 300(1), pages 282-295.
    14. Kaya, Onur, 2010. "Incentive and production decisions for remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 201(2), pages 442-453, March.
    15. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    16. Vercraene, Samuel & Gayon, Jean-Philippe & Flapper, Simme Douwe, 2014. "Coordination of manufacturing, remanufacturing and returns acceptance in hybrid manufacturing/remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 148(C), pages 62-70.
    17. Fei Zhang & Zailin Guan & Li Zhang & Yanyan Cui & Pengxing Yi & Saif Ullah, 2019. "Inventory management for a remanufacture-to-order production with multi-components (parts)," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 59-78, January.
    18. Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
    19. Haolan Liao & Qianwang Deng & Yuanrui Wang, 2017. "Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand," Sustainability, MDPI, vol. 9(3), pages 1-19, February.
    20. Mabel C. Chou & Chee-Khian Sim & Xue-Ming Yuan, 2020. "Policies for inventory models with product returns forecast from past demands and past sales," Annals of Operations Research, Springer, vol. 288(1), pages 137-180, May.
    21. Dev, Navin K. & Shankar, Ravi & Choudhary, Alok, 2017. "Strategic design for inventory and production planning in closed-loop hybrid systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 345-353.
    22. Mohammed Dahane & M’hammed Sahnoun & Belgacem Bettayeb & David Baudry & Hamza Boudhar, 2017. "Impact of spare parts remanufacturing on the operation and maintenance performance of offshore wind turbines: a multi-agent approach," Journal of Intelligent Manufacturing, Springer, vol. 28(7), pages 1531-1549, October.
    23. Behfard, S. & Al Hanbali, A. & van der Heijden, M.C. & Zijm, W.H.M., 2018. "Last Time Buy and repair decisions for fast moving parts," International Journal of Production Economics, Elsevier, vol. 197(C), pages 158-173.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gregory A. DeCroix, 2006. "Optimal Policy for a Multiechelon Inventory System with Remanufacturing," Operations Research, INFORMS, vol. 54(3), pages 532-543, June.
    2. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    3. Corbacioglu, Umut & van der Laan, Erwin A., 2007. "Setting the holding cost rates in a two-product system with remanufacturing," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 185-194, September.
    4. Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
    5. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    6. Sebnem Ahiska, S. & King, Russell E., 2010. "Inventory optimization in a one product recoverable manufacturing system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 11-19, March.
    7. Z P Bayındır & N Erkip & R Güllü, 2005. "Assessing the benefits of remanufacturing option under one-way substitution," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 286-296, March.
    8. Li, Jianzhi & González, Miguel & Zhu, Yun, 2009. "A hybrid simulation optimization method for production planning of dedicated remanufacturing," International Journal of Production Economics, Elsevier, vol. 117(2), pages 286-301, February.
    9. Flapper, Simme Douwe & Gayon, Jean-Philippe & Lim, Lâm Laurent, 2014. "On the optimal control of manufacturing and remanufacturing activities with a single shared server," European Journal of Operational Research, Elsevier, vol. 234(1), pages 86-98.
    10. de Brito, Marisa P. & Dekker, Rommert, 2003. "Modelling product returns in inventory control--exploring the validity of general assumptions," International Journal of Production Economics, Elsevier, vol. 81(1), pages 225-241, January.
    11. Gregory A. DeCroix & Jing-Sheng Song & Paul H. Zipkin, 2009. "Managing an Assemble-to-Order System with Returns," Manufacturing & Service Operations Management, INFORMS, vol. 11(1), pages 144-159, October.
    12. Feng, Yan & Viswanathan, S., 2014. "Heuristics with guaranteed performance bounds for a manufacturing system with product recovery," European Journal of Operational Research, Elsevier, vol. 232(2), pages 322-329.
    13. Moritz Fleischmann & Jo A. E. E. van Nunen & Ben Gräve, 2003. "Integrating Closed-Loop Supply Chains and Spare-Parts Management at IBM," Interfaces, INFORMS, vol. 33(6), pages 44-56, December.
    14. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    15. R Teunter & E van der Laan & D Vlachos, 2004. "Inventory strategies for systems with fast remanufacturing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 475-484, May.
    16. Gou, Qinglong & Liang, Liang & Huang, Zhimin & Xu, Chuanyong, 2008. "A joint inventory model for an open-loop reverse supply chain," International Journal of Production Economics, Elsevier, vol. 116(1), pages 28-42, November.
    17. Shi, Jianmai & Zhang, Guoqing & Sha, Jichang, 2011. "Optimal production and pricing policy for a closed loop system," Resources, Conservation & Recycling, Elsevier, vol. 55(6), pages 639-647.
    18. Huynh, Candice H. & So, Kut C. & Gurnani, Haresh, 2016. "Managing a closed-loop supply system with random returns and a cyclic delivery schedule," European Journal of Operational Research, Elsevier, vol. 255(3), pages 787-796.
    19. Ponte, Borja & Cannella, Salvatore & Dominguez, Roberto & Naim, Mohamed M. & Syntetos, Aris A., 2021. "Quality grading of returns and the dynamics of remanufacturing," International Journal of Production Economics, Elsevier, vol. 236(C).
    20. V. Daniel R. Guide & Vaidyanathan Jayaraman & Rajesh Srivastava & W. C. Benton, 2000. "Supply-Chain Management for Recoverable Manufacturing Systems," Interfaces, INFORMS, vol. 30(3), pages 125-142, June.

    More about this item

    Keywords

    heuristics; inventory control; remanufacturing;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureri:1786. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub (email available below). General contact details of provider: https://edirc.repec.org/data/erimanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.