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The effect of active used product acquisition on manufacturing and remanufacturing strategies

Author

Listed:
  • Gernot Lechner

    (Institute of Production and Operations Management, Karl-Franzens-University Graz)

  • Marc Reimann

    (Institute of Production and Operations Management, Karl-Franzens-University Graz)

Abstract

Companies can gain a competitive edge by managing closed-loop supply chains efficiently. This requires the joint consideration of forward and reverse logistic processes. The acquisition of used products is an important factor within the closed-loop context. The availability of acquired used cores has a direct effect on the manufacturing-reprocessing disposition strategy. Thus, the acquisition process and the production disposition are highly interrelated. In further consequence, the linked view on an active acquisition process combined with manufacturing-remanufacturing decisions is essential. In this paper, the optimal strategies concerning the acquisition of used cores, manufacturing of new products, and remanufacturing are studied analytically in a two-period model with stochastic, newsvendor-like demands. Given the closed-loop setting, the quantity acquired and remanufactured in the second period is limited to the sales of new products in the first period. Furthermore, a numerical study provides insights into the influence of an active acquisition process on quantities and profit.

Suggested Citation

  • Gernot Lechner & Marc Reimann, 2013. "The effect of active used product acquisition on manufacturing and remanufacturing strategies," Working Paper Series, Social and Economic Sciences 2013-01, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    • Handle: RePEc:grz:wpsses:2013-01
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    References listed on IDEAS

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    Cited by:

    1. Gernot Lechner & Marc Reimann, 2015. "The R.U.S.Z.-case: an independent, non-profit reprocessing and repair company," Working Paper Series, Social and Economic Sciences 2015-01, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    2. Muneeb, Syed Mohd & Asim, Zainab & Hajiaghaei-Keshteli, Mostafa & Abbas, Haidar, 2023. "A multi-objective integrated supplier selection-production-distribution model for re-furbished products: Towards a circular economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).

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