Inventory decision-making on a multi-product hybrid system with finite remanufacturing capacity

摘要

To determine the optimal manufacturing and remanufacturing policy, a multi-product hybrid system with finite remanufacturing capacity is investigated. Each product at the end of serviceable life is returned from customers at the constant rate, but due to finite remanufacturing capacity some products which are not remanufactured are disposed off. The demand for each product is constant and fulfilled by the serviceable product inventory which includes manufactured products and remanufactured products, and shortage is not permitted. The inventory decision-making model is formulated under the (1, N) policy, and remanufacturing sequence and fraction for each product are determined by Lagrange multiplier method and greedy algorithm respectively.