Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint |
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Authors: | Z Pelin Bay?nd?r Nesim Erkip Refik Güllü |
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Affiliation: | 1. Econometric Institute, Erasmus University Rotterdam, P.O. Box 1738, 3000DR Rotterdam, The Netherlands;2. Department of Industrial Engineering, Middle East Technical University, 06531 Ankara, Turkey |
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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. |
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Keywords: | Remanufacturing Inventory One-way substitution Capacity constraint |
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