Optimal production planning for a multi-product closed loop system with uncertain demand and return

Authors:
Jianmai Shi;Guoqing Zhang;Jichang Sha
Affiliations:
Department of Industrial and Manufacturing Systems Engineering, University of Windsor, Windsor, Ontario, Canada and School of Information System and Management, National University of Defense Tech ...;Department of Industrial and Manufacturing Systems Engineering, University of Windsor, Windsor, Ontario, Canada;School of Information System and Management, National University of Defense Technology, Changsha, Hunan, China
Venue:
Computers and Operations Research
Year:
2011

Citing 9
Cited 3

Inventory Control in Hybrid Systems with Remanufacturing

Management Science
Pricing and the News Vendor Problem: a Review with Extensions

Operations Research
Supply-Chain Management for Recoverable Manufacturing Systems

Interfaces
Matching Demand and Supply to Maximize Profits from Remanufacturing

Manufacturing & Service Operations Management
Supply planning model for remanufacturing system in reverse logistics environment

Computers and Industrial Engineering - Special issue: Logistics and supply chain management
The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles

Management Science
Time Value of Commercial Product Returns

Management Science
Optimal manufacturing-remanufacturing policies in a lean production environment

Computers and Industrial Engineering
OR FORUM---The Evolution of Closed-Loop Supply Chain Research

Operations Research

An integrated model for closed-loop supply chain configuration and supplier selection: Multi-objective approach

Expert Systems with Applications: An International Journal
The economics of hybrid manufacturing systems in a closed-loop supply chain

Netnomics
Fuzzy mixed integer programming model for medium-term planning in a closed-loop supply chain with remanufacturing option

Journal of Intelligent & Fuzzy Systems: Applications in Engineering and Technology - FUZZYSS'2011: 2nd International Fuzzy Systems Symposium

Quantified Score

Hi-index	0.01

Visualization

Abstract

We study the production planning problem for a multi-product closed loop system, in which the manufacturer has two channels for supplying products: producing brand-new products and remanufacturing returns into as-new ones. In the remanufacturing process, used products are bought back and remanufactured into as-new products which are sold together with the brand-new ones. The demands for all the products are uncertain, and their returns are uncertain and price-sensitive. The problem is to maximize the manufacturer's expected profit by jointly determining the production quantities of brand-new products, the quantities of remanufactured products and the acquisition prices of the used products, subject to a capacity constraint. A mathematical model is presented to formulate the problem and a Lagrangian relaxation based approach is developed to solve the problem. Numerical examples are presented to illustrate the model and test the solution approach. Computational results show that the proposed approach is highly promising for solving the problems. The sensitivity analysis is also conducted to generate managerial insights.