| Abstract: | The process of remanufacturing is attractive economically and environmentally for both manufacturers and customers. This paper addresses a problem in the repairable spare parts remanufacturing industry to find the cost-optimal production strategy incorporating reconditioned components. New and reconditioned components are used to carry out replacements in order to honor warranty commitments. Key production decisions, such as when remanufacturing should commence, how long the warranty period should be, and how many returned components should be reconditioned are considered. The availability of reconditioned components and their discounted costs are also incorporated in the mathematical model. The goal is to investigate the interaction between these decisions and their impacts on the manufacturing system and the customer. An application to the remanufacturing of rotable spare parts in the airline industry is presented. |
