Part Recovery under Quality and Demand Uncertainty with Environmental Costs

Yildirim G., Akcali E., Bayındır Z. P.

INFORMS 2010 Annual Meeting, Texas, United States Of America, 24 - 30 October 2010, pp.1

  • Publication Type: Conference Paper / Summary Text
  • City: Texas
  • Country: United States Of America
  • Page Numbers: pp.1
  • Middle East Technical University Affiliated: Yes


We consider acquisition and stocking decisions, motivated by the operations of a salvaging facility that collects a particular end-of-life product, performs a series of disassembly and recovery operations to reclaim a reusable part and sells the recovered part in the used parts market. We model uncertainties in demand and quality classification of the parts and include environmental fees that create a non-negligible tradeoff against the operational costs in acquisition and stocking decisions.