Author ORCID Identifier

http://orcid.org/0000-0003-0821-8787 : Guoqing Zhang

Document Type

Article

Publication Date

12-2010

Publication Title

Journal of Systems Science and Systems Engineering

Volume

19

Issue

4

First Page

385

Last Page

407

DOI

10.1007/s11518-010-5147-5

Keywords

Closed loop supply chain, uncertain demand, uncertain return, reverse logistics, Lagrangian relaxation

Abstract

In this paper, the joint production and recycling problem is investigated for a hybrid manufacturing and remanufacturing system where brand-new products are produced in the manufacturing plant and recycled products are remanufactured into as-new products in the remanufacturing facility. Both the brand-new products and remanufactured products are used to satisfy customer demands. Returns of used products that are recycled from customers are assumed to be stochastic and nonlinearly price-dependent. A mathematical model is proposed to maximize the overall profit of the system through simultaneously optimizing the production and recycling decisions, subject to two capacity constraints — the manufacturing capacity and the remanufacturing capacity. Based on Lagrangian relaxation method, subgradient algorithm and heuristic algorithm, a solution approach is developed to solve the problem. A representative example is presented to illustrate the system, and managerial analysis indicates that the uncertainties in demand and return have much influence on the production and recycling policy. In addition, twenty randomly produced examples are solved, and computational results show that the solution approach can obtain very good solutions for all examples in reasonable time.

Funding Reference Number

NSERC DG 298482

Comments

Recommended citation:

Shi, J., Zhang, G., Sha, J., & Amin, S. H. (2010). Coordinating production and recycling decisions with stochastic demand and return. Journal of Systems Science and Systems Engineering, 19(4), 385-407.

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

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