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Simple heuristics for push and pull remanufacturing policies

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  • 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
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    References listed on IDEAS

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    1. repec:pal:jorsoc:v:54:y:2003:i:1:d:10.1057_palgrave.jors.2601480 is not listed on IDEAS
    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. 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.
    7. 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.
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    Cited by:

    1. Mohammed Dahane & M’hammed Sahnoun & Belgacem Bettayeb & David Baudry & Hamza Boudhar, 0. "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. 0, pages 1-19.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    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. repec:eee:ejores:v:262:y:2017:i:3:p:1009-1027 is not listed on IDEAS
    10. repec:eee:ejores:v:267:y:2018:i:3:p:1102-1109 is not listed on IDEAS
    11. 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.
    12. Kaya, Onur, 2010. "Incentive and production decisions for remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 201(2), pages 442-453, March.
    13. Retel Helmrich, M. & Jans, R.F. & van den Heuvel, W.J. & Wagelmans, A.P.M., 2010. "Economic lot-sizing with remanufacturing: complexity and efficient formulations," Econometric Institute Research Papers EI 2010-71, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    14. 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.
    15. 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.
    16. Fei Zhang & Zailin Guan & Li Zhang & Yanyan Cui & Pengxing Yi & Saif Ullah, 0. "Inventory management for a remanufacture-to-order production with multi-components (parts)," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-20.
    17. 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.
    18. 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, Open Access Journal, vol. 9(3), pages 1-19, February.
    19. 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.
    20. repec:eee:proeco:v:197:y:2018:i:c:p:158-173 is not listed on IDEAS

    More about this item

    Keywords

    heuristics; inventory control; remanufacturing;

    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

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