Authors: Kyung Sung Jung Milind Dawande H Neil Geismar V Daniel R Guide Chelliah Sriskandarajah
Publish Date: 2014/03/21
Volume: 240, Issue: 2, Pages: 533-581
Abstract
We study a supply planning problem in a manufacturing system with two stages The first stage is a remanufacturer that supplies two closelyrelated components to the second manufacturing stage which uses each component as the basis for its respective product The used products are recovered from the market by a thirdparty logistic provider through an established reverse logistics network The remanufacturer may satisfy the manufacturer’s demand either by purchasing new components or by remanufacturing components recovered from the returned used products The remanufacturer’s costs arise from product recovery remanufacturing components purchasing original components holding inventories of recovered products and remanufactured components production setups at the first stage and at each component changeover disposal of recovered products that are not remanufactured and coordinating the supply modes The objective is to develop optimal production plans for different production strategies These strategies are differentiated by whether inventories of recovered products or remanufactured components are carried and by whether the order in which retailers are served during the planning horizon may be resequenced We devise production policies that minimize the total cost at the remanufacturer by specifying the quantity of components to be remanufactured the quantity of new components to be purchased from suppliers and the quantity of recovered used products that must be disposed The effects of production capacity are also explored A comprehensive computational study provides insights into this closedloop supply chain for those strategies that are shown to be NPhardEven–Odd Partition Garey et al 1988 given an integer B a set of 2t positive integers A = a 1 a 2…a 2t−1 a 2t such that a 1 a 2 ⋯ a 2t−1 a 2t and sumnolimits a iin A a i= 2B does there exist a partition of A into two disjoint subsets A 1 and A 2 such that sumnolimits a kin A 1a k=sumnolimits a jin A 2a j=BA 1 = A 2=t and that each of A 1 A 2 contains exactly one of a 2i−1 and a 2i for i = 1 2…t
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