INFORMS 2005 Annual Meeting, Louisiana, United States Of America, 23 - 29 October 2005, pp.1
We consider a salvaging facility that satisfies the demand for remanufactured parts that can be recovered from the end-of-life products. One of the difficulties faced in planning for such a system is the determination of the opportunity cost associated with carrying recovered parts inventory. In this study we investigate the effect of different rules to determine this opportunity cost on the performance of the system. The performance of several different rules is assessed by a computational study under a proposed approximate inventory control policy.