An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies

An investigation of lead-time effects in manufacturing/remanufacturing systems under simple PUSH and PULL control strategies

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Article ID: iaor20001416
Country: Netherlands
Volume: 115
Issue: 1
Start Page Number: 195
End Page Number: 214
Publication Date: May 1999
Journal: European Journal of Operational Research
Authors: , ,
Keywords: inventory, manufacturing industries
Abstract:

In this paper we extend the PUSH and PULL control strategies defined by van der Laan et al. to evaluate numerically the effects of lead-time duration and lead-time variability on total expected costs in production/inventory systems with remanufacturing. Although both strategies are non-optimal, they are relatively easy to analyse numerically and, more importantly, they are actually used in practice. The most important outcomes of the study are, that for both control strategies: (i) manufacturing lead-times have a larger influence on system costs than remanufacturing lead-times; (ii) a larger remanufacturing lead-time may sometimes result in a cost decrease; and (iii) a larger variability in the manufacturing lead-time may sometimes result in a cost decrease.

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