A Mixed-Integer Mathematical Programming Model for Integrated Planning of Manufacturing and Remanufacturing Activities (original) (raw)
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This paper deals with the production planning and control of a single product involving combined manufacturing and remanufacturing operations within a closed-loop reverse logistics network with machines subject to random failures and repairs. While consumers traditionally dispose of products at the end of their life cycle, recovery of the used products may be economically more attractive than disposal, while remanufacturing of the products also pursues sustainable development goals. Three types of inventories are involved in this network. The manufactured and remanufactured items are stored in the first and second inventories. The returned products are collected in the third inventory and then remanufactured or disposed of. The objective of this research is to propose a manufacturing/remanufacturing policy that would minimize the sum of the holding and backlog costs for manufacturing and remanufacturing products. The decision variables are the production rates of the manufacturing and the remanufacturing machines. The optimality conditions are developed using the optimal control theory based on stochastic dynamic programming. A computational algorithm, based on numerical methods, is used for solving the optimal control problem. Finally, a numerical example and a sensitivity analysis are presented to illustrate the usefulness of the proposed approach. The structure of the optimal control policy is discussed depending on the value of costs and parameters and extensions to more complex reverse logistics networks are discussed.
A mixed integer programming model for remanufacturing in reverse logistics environment
International Journal of Advanced Manufacturing Technology, 2008
Recently, there has been a growing interest in reverse logistics due to environmental deterioration. Firms incorporate reverse flow to their systems for such reasons as ecological and economic factors, government regulations and social responsibilities. In this paper a new mixed integer mathematical model for a remanufacturing system, which includes both forward and reverse flows, is proposed and illustrated on a numerical example. The proposed model provides the optimal values of production and transportation quantities of manufactured and remanufactured products while solving the location problem of dissassembly, collection and distribution facilities. The model is validated by using a set of experimental data reflecting practical business situation. Sensitivity analysis of the model is also presented.
Production planning and inventory control for remanufacturable durable products
Journal of Applied Non-classical Logics, 1996
In this paper we focus on production planning and inventory control in systems where manufacturing and remanufacturing operations occur simultaneously. Typical for these hybrid systems is, that both the output of the manufacturing process and the output of the remanufacturing process can be used to fulfil customer demands. This process interaction together with other process interactions and various sources of uncertainty make production planning and inventory control in hybrid systems more complex than production planning and inventory control in traditional systems. The objectives of this paper are to demonstrate some of the effects of remanufacturing on production planning and inventory control, and to indicate various actions that can be taken by remanufacturing companies to improve their cost-efficiency. In particular, the issues of how much and where to keep (safety) stocks, how much and when to manufacture and remanufacture, and how to reduce the various sources of system uncertainty will be addressed. In this context we study a relatively simple hybrid system, related to a single component durable product. The behaviour of this system is numerically evaluated both under a PUSH-remanufacturing strategy (in which all returned products are remanufactured as early as possible) and under a PULL-remanufacturing strategy (in which the timing of remanufacturing operations depends on a combination of market demands for new products and market supply of returned products).
Sādhanā, 2021
This paper addresses the optimization of make-to-order hybrid manufacturing-remanufacturing system to make capacity and inventory decisions jointly along with production decisions. The proposed system considers a common production facility and the same assembly/disassembly line to perform manufacturing and remanufacturing operations simultaneously. The current study takes into account an environment where new and remanufactured (reman) products competing to each other that is, the common demand stream for both products but different selling prices. Furthermore, the relative capacity consumed by remanufacturing over the manufacturing is explained in two ways, namely less capacity intensive case and more capacity intensive case. Differently, from previous studies, we consider a scenario with a discounted selling price for reman products, shortage penalty costs, lost sales, disposal and uncertainty in demand, amount and yield of returns. Hence, to handle those uncertainties, a scenario-based stochastic programming model in a two-stage setting is presented. In the first stage, the raw material inventory and production capacity levels are planned and in the second stage, the production, inventory and disposal decisions are determined by balancing overage and underage costs. The results indicate that net values associated with new and reman products can be decisive in choosing either manufacturing or remanufacturing.
International Journal of Engineering Research in Africa, 2018
In the present scheme of things, in a manufacturing industry inventory is pitched as one of the significant resources that require to be handled effectively. The aim of this research article is to develop a mixed-integer linear programming model to configure the closed loop supply chain (CLSC) network and that could be optimized for maximizing the profit by determining the fixed order quantity inventory policy in various sites at multiple periods. The objective is to maximize the profit through CLSC by determining the optimal inventory of product and part mix during multiple periods. In onward supply chain, a standard inventory policy is followed when the product moves from manufacturer to end user, but it is very difficult to manage the inventory in the reverse supply chain of the product with the same standard policy. The proposed model examines the standard policy of fixed order quantity by considering three major types of return-recovery pair such as, commercial returns, end-of-...
A comparison of production policies in remanufacturing systems
2009
In remanufacturing systems material management and production planning, unlike what happens in traditional production settings, are made difficult by a wider uncertainty affecting the quantity, the quality and the timing of recovered products/components. This instability makes the problem of defining an optimal inventory control policy more complicated as well as not unique within the product life cycle. In this article, after having reviewed the existing literature on inventory management in remanufacturing systems, a particular policy for material management and production planning in a hybrid remanufacturing system has been proposed. The considered model a multi stage inventory model. The comparison of the proposed policy with some others already present in literature, in different scenarios related to the product life cycle and with the change of several cost parameters, is carried out using the discrete event simulation approach. This allows us to identify in what circumstances such a policy is preferable to the others.
A comparison of production policies in remanufacturing systems,(2009)
In remanufacturing systems material management and production planning, unlike what happens in traditional production settings, are made difficult by a wider uncertainty affecting the quantity, the quality and the timing of recovered products/components. This instability makes the problem of defining an optimal inventory control policy more complicated as well as not unique within the product life cycle. In this article, after having reviewed the existing literature on inventory management in remanufacturing systems, a particular policy for material management and production planning in a hybrid remanufacturing system has been proposed. The considered model a multi stage inventory model. The comparison of the proposed policy with some others already present in literature, in different scenarios related to the product life cycle and with the change of several cost parameters, is carried out using the discrete event simulation approach. This allows us to identify in what circumstances such a policy is preferable to the others.
MDP Model for the Remanufacturing Problem in the Closed-loop Supply Chain
Recently, remanufacturing as a key operation of the closed-loop supply chain has attracted attentions of researchers both in academy and practice. This paper investigated the impact of the acquisition effort of product return exerted by the firm on the inventory and pricing decisions in a remanufacturing system by formulating it into a Markov Decision Process (MDP) model. And interesting managerial insights were obtained by theoretical analysis and numerical experiments.
Production planning and control of closed-loop supply chains
2001
More and more supply chains emerge that include a return flow of materials. Many original equipment manufacturers are nowadays engaged in the remanufacturing business. In many process industries, production defectives and by-products are reworked. These closed-loop supply chains deserve special attention. Production planning and control in such hybrid systems is a real challenge, especially due to increased uncertainties. Even companies that are engaged in remanufacturing operations only, face more complicated planning situations than traditional manufacturing companies.We point out the main complicating characteristics in closed-loop systems with both remanufacturing and rework, and indicated the need for new or modified/extended production planning and control approaches. An overview of the existing scientific contributions is given. It appears that we only stand at the beginning of this line of research, and that many more contributions are needed and expected in the future.
Computers & Operations Research, 2007
Product recovery operations in reverse supply chains face continually and rapidly changing product demand characterized by an ever increasing number of product offerings with reduced lifecycles due to both technological advancements and environmental concerns. Capacity planning is a strategic issue of increased complexity importance for the profitability of reverse supply chains due to their highly variable return flows. In this work we tackle the development of efficient capacity planning policies for remanufacturing facilities in reverse supply chains, taking into account not only economic but also environmental issues, such as the take-back obligation imposed by legislation and the "green image" effect on customer demand. The behavior of the generic system under study is analyzed through a simulation model based on the principles of the system dynamics methodology. The simulation model provides an experimental tool, which can be used to evaluate alternative long-term capacity planning policies ("what-if" analysis) using total supply chain profit as measure of policy effectiveness. Validation and numerical experimentation further illustrate the applicability of the developed methodology, while providing additional intuitively sound insights.