Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint


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Bayindir Z. P. , Erkip N., Gullu R.

COMPUTERS & OPERATIONS RESEARCH, vol.34, no.2, pp.487-514, 2007 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 34 Issue: 2
  • Publication Date: 2007
  • Doi Number: 10.1016/j.cor.2005.03.010
  • Journal Name: COMPUTERS & OPERATIONS RESEARCH
  • Journal Indexes: Science Citation Index Expanded, Scopus
  • Page Numbers: pp.487-514
  • Keywords: remanufacturing, inventory, one-way substitution, capacity constraint, STOCHASTIC INVENTORY CONTROL, MANUFACTURING/REMANUFACTURING SYSTEMS, DEMAND SUBSTITUTION, CONTROL STRATEGIES, PRODUCT, MODEL, DISPOSAL, POLICIES, MANAGEMENT, ECONOMICS

Abstract

In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of the joint manufacturing/remanufacturing facility. (c) 2005 Elsevier Ltd. All rights reserved.