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

Tobias Schulz () and Ivan Ferretti
Additional contact information
Tobias Schulz: Faculty of Economics and Management, Otto-von-Guericke University Magdeburg
Ivan Ferretti: Faculty of Economics and Management, Otto-von-Guericke University Magdeburg

No 8034, FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management

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%.

Keywords: reverse logistics; remanufacturing; lot sizing; disassembly; random yield (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-12
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2008_Dateien/2008_34.pdf First version, 2008 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.ww.uni-magdeburg.de:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mag:wpaper:08034

Access Statistics for this paper

More papers in FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Guido Henkel ().