Assessing the benefits of remanufacturing option under one-way substitution


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Bayindir Z. , Erkip N., Gullu R.

JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, cilt.56, sa.3, ss.286-296, 2005 (SCI İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 56 Konu: 3
  • Basım Tarihi: 2005
  • Doi Numarası: 10.1057/palgrave.jors.2601799
  • Dergi Adı: JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
  • Sayfa Sayıları: ss.286-296

Özet

In this study, we consider a segmented market for a product that can either be manufactured or remanufactured. It is assumed that the remanufactured products can be substituted by the new ones. A steady-state profit model is constructed under certain environmental assumptions on capacity requirements of operations, and revenue and cost schemes. Exact steady-state probabilities of the Markovian model constructed are solved via matrix geometric techniques. An extensive computational study is performed to investigate the conditions under which the utilization of remanufacturing option and the use of one-way substitution policy increase the average expected profit.