 Heuristics for the stochastic economic lot sizing problem with remanufacturing under backordering costsOnur A. Kilic and Huseyin Tunc European Journal of Operational Research, 2019, vol. 276, issue 3, 880-892 Abstract: We consider a production system where demand can be met by manufacturing new products and remanufacturing returned products, and address the economic lot sizing problem therein. The system faces stochastic and time-varying demands and returns over a finite planning horizon. The problem is to match supply with demand, while minimizing the total expected cost which is comprised of fixed production costs and inventory (holding and backordering) costs. We introduce heuristic policies for this problem which offer different levels of flexibility with respect to production decisions. We present computational methods for these policies based on convex optimization and certainty equivalent mixed integer programming, and numerically assess their cost performance and computational efficiency by means of simulation. Keywords: Inventory; Stochastic lot-sizing; Remanufacturing; Heuristic; Mixed integer programming (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:276:y:2019:i:3:p:880-892 DOI: 10.1016/j.ejor.2019.01.051 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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