Assessing the benefits of remanufacturing option under one-way substitution

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.


Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint
Bayındır, Zeynep Pelin; Gullu, Refik (Elsevier BV, 2007-02-01)
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 th...
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...
A Lagrangean relaxation based approach for the capacity allocation problem in flexible manufacturing systems
ÖZPEYNİRCİ, SELİN; Azizoğlu, Meral (Informa UK Limited, 2010-05-01)
This study considers the operation assignment and capacity allocation problem in flexible manufacturing systems. A set of operations is selected to be processed and assigned to the machines together with their required tools. The purchase or usage of the required tools incurs a cost. The machines have scarce time and tool magazine capacities. The objective is to maximize the total weight of the assigned operations minus the total tooling costs. We use Lagrangean relaxation approach to obtain upper and lower...
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...
A resource investment problem with time/resource trade-offs
Colak, Erdem; Azizoğlu, Meral (Informa UK Limited, 2014-05-01)
In this study, we consider a Resource Investment Problem with time/resource trade-offs in project networks. We assume that there is a single renewable resource and the processing requirement of an activity can be reduced by investing extra resources. Our aim is to minimize the maximum resource usage, hence, the total amount invested for the single resource, while meeting the pre-specified deadline. We formulate the problem as a mixed integer linear model and find optimal solutions for small-sized problem in...
Citation Formats
Z. P. Bayındır and R. Gullu, “Assessing the benefits of remanufacturing option under one-way substitution,” JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, pp. 286–296, 2005, Accessed: 00, 2020. [Online]. Available: