Document Type

Article

Publication Date

Fall 9-18-2015

Publication Title

International Journal of Production Research

Volume

54

Issue

5

First Page

1487

Last Page

1502

DOI

10.1080/00207543.2015.1086034

Keywords

closed-loop supply chain; quality management; production planning; remanufacturing; tire retreading

Funding Reference Number

NSERC RGPIN-2014-03594

Comments

This research studies the configuration problem of a remanufacturing production network together with the decision for return quality thresholds, in which, the manufacturer has multiple remanufacturing facilities to satisfy different market demands. Quality of returns is stochastic, while demand for remanufactured products is either stochastic or deterministic. The problem we considered is to determine facilities to operate, minimum quality to accept into each operating facility, return quantity and demand allocation simultaneously so that the system’s profit is maximised. The problem is formulated as a mixed integer non-linear programming model. Through the use of a numerical example, the impact of quantity of returns, total spending, quality uncertainty, demand uncertainty and transportation cost on the remanufacturing system is analysed.