Offshore remanufacturing with variable used product condition

摘要

Purpose: To investigate off-shoring decisions from the perspective of a remanufacturer. Summary: The acquisition and production decisions of a remanufacturer allocating activities to domestic an offshore facilities are considered. The problem is formulated as a multi-commodity network flow model with economies of scale and product obsolescence. The optimal strategy is shown as possible to be chosen from a finite set of simple policies in which each product is routed to a facility based on its condition. (26 refs.) Results: Considering remanufacturing activity ( RMA) as labor intensive accessibility to lower labor rate available in some offshore locations becomes a strategically important consideration. An accurate decision model for RM off shoring (RMO) decision must include the added complexity of variability in the condition of used materials.