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

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.


A deterministic inventory/production model with general inventory cost rate function and piecewise linear concave production costs
Bayındır, Zeynep Pelin; Frenk, J. B. G. (Elsevier BV, 2007-05-16)
We present a thorough analysis of the economic production quantity model with shortages under a general inventory cost rate function and piecewise linear concave production costs. Consequently, an effective solution procedure, particularly useful for an approximation scheme, is proposed. A computational study is appended to illustrate the performance of the proposed solution procedure.
Assessing the benefits of remanufacturing option under one-way substitution
Bayındır, Zeynep Pelin; Gullu, R (Informa UK Limited, 2005-03-01)
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 inve...
Analyzing the effects of inventory cost setting rules in a disassembly and recovery environment
Akcali, Elif; Bayındır, Zeynep Pelin (Informa UK Limited, 2008-01-01)
In this study we consider a disassembly and recovery facility receiving end-of-life products and facing demand for a specific part that is disassembled from the product and then recovered. The disassembly and recovery operations can be either performed before hand, or upon customer arrival. In the latter case, a discount on the selling price is applied to compensate the customer for waiting for the completion of the disassembly and recovery operations. One of the dificulties faced in planning for such a sys...
Considering manufacturing cost and scheduling performance on a CNC turning machine
Gürel, Sinan (Elsevier BV, 2007-02-16)
A well known industry application that allows controllable processing times is the manufacturing operations on CNC machines. For each turning operation as an example, there is a nonlinear relationship between the manufacturing cost and its required processing time on a CNC turning machine. If we consider total manufacturing cost (F-1) and total weighted completion time (F-2) objectives simultaneously on a single CNC machine, making appropriate processing time decisions is as critical as making job sequencin...
Heuristic methods for the capacitated stochastic lot-sizing problem under the static-dynamic uncertainty strategy
Randa, A. Cem; Dogru, Mustafa K.; İyigün, Cem; Ozen, Ulas (Elsevier BV, 2019-09-01)
We consider a lot-sizing problem in a single-item single-stage production system facing non-stationary stochastic demand in a finite planning horizon. Motivated by common practice, the set-up times need to be determined and frozen once and for all at the beginning of the horizon while decisions on the exact lot sizes can be deferred until the setup epochs. This operating scheme is referred to as the static dynamic uncertainty strategy in the literature. It has been shown that a modified base stock policy is...
Citation Formats
Z. P. Bayındır and R. Gullu, “Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint,” COMPUTERS & OPERATIONS RESEARCH, pp. 487–514, 2007, Accessed: 00, 2020. [Online]. Available: