IDEAS home Printed from https://ideas.repec.org/p/mag/wpaper/08034.html
   My bibliography  Save this paper

On the alignment of lot sizing decisions in a remanufacturing system in the presence of random yield

Author

Listed:
  • Tobias Schulz

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Ivan Ferretti

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

In the area of reverse logistics, remanufacturing has been proven to be a valu- able option for product recovery. In many industries, each step of the products’ recovery is carried out in lot sizes which leads to the assumption that for each of the different recovery steps some kind of fixed costs prevail. Furthermore, holding costs can be observed for all recovery states of the returned product. Although several authors study how the different lot sizes in a remanufacturing system shall be determined, they do not consider the specificity of the remanufacturing process itself. Thus, the disassembly operations which are always neglected in former analyses are included in this contribution as a specific recovery step. In addition, the assumption of deterministic yields (number of reworkable compo- nents obtained by disassembly) is extended in this work to study the system behavior in a stochastic environment. Three different heuristic approaches are presented for this environment that differ in their degree of sophistication. The least sophisticated method ignores yield randomness and uses the expected yield fraction as certainty equivalent. As a numerical experiment shows, this method already yields fairly good results in most of the investigated problem instances in comparison to the other heuristics which incorporate yield uncertainties. How- ever, there exist instances for which the performance loss between the least and the most sophisticated heuristic amounts to more than 6%.

Suggested Citation

  • Tobias Schulz & Ivan Ferretti, 2008. "On the alignment of lot sizing decisions in a remanufacturing system in the presence of random yield," FEMM Working Papers 08034, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:08034
    as

    Download full text from publisher

    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2008_Dateien/2008_34.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tang, Ou & Grubbstrom, Robert W., 2005. "Considering stochastic lead times in a manufacturing/remanufacturing system with deterministic demands and returns," International Journal of Production Economics, Elsevier, vol. 93(1), pages 285-300, January.
    2. de Brito, M.P. & Flapper, S.D.P. & Dekker, R., 2002. "Reverse logistics," Econometric Institute Research Papers EI 2002-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    Full references (including those not matched with items on IDEAS)

    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. Sadok Turki & Stanislav Didukh & Christophe Sauvey & Nidhal Rezg, 2017. "Optimization and Analysis of a Manufacturing–Remanufacturing–Transport–Warehousing System within a Closed-Loop Supply Chain," Sustainability, MDPI, vol. 9(4), pages 1-20, April.
    2. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
    3. José L. Vilar-Zanón & Eduardo Vilar & Antonio Heras, 2017. "Online product returns risk assessment and management," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 445-466, October.
    4. Ketzenberg, M.E. & van der Laan, E.A. & Teunter, R.H., 2004. "The Value of Information in Reverse Logistics," ERIM Report Series Research in Management ERS-2004-053-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.
    5. Radoslav Škapa, 2014. "Formalized Planning and Its Connection With the Development of Reverse Logistics: the Case of Services," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(4), pages 749-755.
    6. Kalogerakis, Katharina & Drabe, Viktoria & Paramasivam, Mugundan & Herstatt, Cornelius, 2015. "Closed-Loop Supply Chains for Cradle to Cradle Products," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Sustainability in Logistics and Supply Chain Management: New Designs and Strategies. Proceedings of the Hamburg International Conference of Logistics , volume 21, pages 3-34, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    7. Alena Klapalová, 2012. "Reverse logistics and 3PL in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 163-170.
    8. Chung, Chun-Jen & Wee, Hui-Ming, 2008. "Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 528-545, June.
    9. Volker Trauzettel, 2015. "A Case Study On Optimizing Parts Supply In Manufacturing By Reusable Containers," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 15, pages 161-174.
    10. Álvarez, María José & Berrone, Pascual Alberto & Husillos, F. Javier & Lado, Nora, 2005. "The explanatory power of trust and commitment and stakeholders' salience : their influence on the reverse logistics programs performance," DEE - Working Papers. Business Economics. WB wb050303, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    11. Ta-Yu Chen & Woo-Tsong Lin & Chwen Sheu, 2018. "A Dynamic Failure Rate Forecasting Model for Service Parts Inventory," Sustainability, MDPI, vol. 10(7), pages 1-23, July.
    12. Abdelkader Sbihi & Richard Eglese, 2010. "Combinatorial optimization and Green Logistics," Annals of Operations Research, Springer, vol. 175(1), pages 159-175, March.
    13. M. Fonseca & Álvaro García-Sánchez & Miguel Ortega-Mier & Francisco Saldanha-da-Gama, 2010. "A stochastic bi-objective location model for strategic reverse logistics," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 18(1), pages 158-184, July.
    14. Zailani, Suhaiza & Jeyaraman, K. & Vengadasan, G. & Premkumar, R., 2012. "Sustainable supply chain management (SSCM) in Malaysia: A survey," International Journal of Production Economics, Elsevier, vol. 140(1), pages 330-340.
    15. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    16. Le Blanc, H.M. & Fleuren, H.A. & Krikke, H.R., 2002. "Network Designs for LPG Tanks in the Netherlands," Other publications TiSEM 6516dab2-eb20-45d5-b35b-0, Tilburg University, School of Economics and Management.
    17. Blanka Tundys & Tomasz Wiśniewski, 2018. "The Selected Method and Tools for Performance Measurement in the Green Supply Chain—Survey Analysis in Poland," Sustainability, MDPI, vol. 10(2), pages 1-26, February.
    18. Quariguasi Frota Neto, J. & Walther, G. & Bloemhof-Ruwaard, J.M. & van Nunen, J.A.E.E. & Spengler, T., 2007. "From Closed-Loop to Sustainable Supply Chains: The WEEE case," ERIM Report Series Research in Management ERS-2007-036-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.
    19. Toktay, B. & van der Laan, E.A. & de Brito, M.P., 2003. "Managing Product Returns: The Role of Forecasting," ERIM Report Series Research in Management ERS-2003-023-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.
    20. Derek Voigt & Nelson Casarotto Filho & Mayara Atherino Macedo & Thais Guerra Braga & Rodrigo Ulisses Garbin da Rocha, 2019. "Performance Evaluation of Reverse Logistics: Opportunities for Future Research," Sustainability, MDPI, vol. 11(19), pages 1-17, September.

    More about this item

    Keywords

    reverse logistics; remanufacturing; lot sizing; disassembly; random yield;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:mag:wpaper:08034. 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: Guido Henkel (email available below). General contact details of provider: https://edirc.repec.org/data/fwmagde.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.