Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint

In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. A single period profit model under substitution is constructed to investigate the system conditions...

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Bibliographic Details
Published inComputers & operations research Vol. 34; no. 2; pp. 487 - 514
Main Authors Bayındır, Z. Pelin, Erkip, Nesim, Güllü, Refik
Format Journal Article
LanguageEnglish
Published New York Elsevier Ltd 01.02.2007
Pergamon Press Inc
Subjects
Capacity constraint
Inventory
One-way substitution
Operations research
Production capacity
Profitability
Remanufacturing
Studies
One-way substitution
Capacity constraint
Remanufacturing
Inventory
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Summary:In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of the joint manufacturing/remanufacturing facility.
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ISSN:0305-0548
1873-765X
0305-0548
DOI:10.1016/j.cor.2005.03.010