Offshore remanufacturing with variable used product condition

Offshore remanufacturing with variable used product condition

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Article ID: iaor20101979
Volume: 41
Issue: 1
Start Page Number: 5
End Page Number: 20
Publication Date: Feb 2010
Journal: Decision Sciences
Authors: ,
Keywords: networks
Abstract:

We consider the acquisition and production decisions of a remanufacturer who acquires used products of variable condition and allocates remanufacturing activity to domestic and offshore facilities. The problem is formulated as a multicommodity network flow model with economies of scale and product obsolescence. We show that the remanufacturer's optimal strategy can be chosen from a finite set of simple policies in which each product is routed to a facility based on its condition. We then numerically investigate the impact of key parameters on optimal decisions regarding offshore remanufacturing.

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