Capacitated remanufacturing with service level constraints

Capacitated remanufacturing with service level constraints

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Article ID: iaor2004135
Country: United States
Volume: 11
Issue: 2
Start Page Number: 231
End Page Number: 248
Publication Date: Jun 2002
Journal: Production and Operations Management
Authors: , ,
Keywords: queues: applications, simulation: applications
Abstract:

This research examines production planning and control for a remanufacturer that can sell returned items on a graded as-is basis or remanufacture the returned items. Using GI/G/1 queuing network, we model the firm's decision to remanufacture an optimal product mix over the long run that maximizes profits while maintaining a desired service level. We further use simulation to explore dispatching heuristics that can be used at the shop-floor level to achieve the desired optimal product mix, while meeting the service level constraint. Our research is grounded in actual practice and the results provide key insights into the decision-making process required to maximize profits and minimize average flow times for remanufactured products.

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