Dynamic lot sizing problem for systems with bounded inventory and remanufacturing was addressed. The demand and return amounts are deterministic over the finite planning horizon. Demands can be satisfied by manufactured new items, but also by remanufactured returned items. In production planning, there can be situations where the ability to meet customer demands is constrained by inventory capacity rather than production capacity. Two different limited inventory capacities are considered; there is either bounded serviceables inventory or bounded returns inventory. For the two inventory case, we present exact, polynomial time dynamic programming algorithm based on the idea of Teunter R, et al. (2006).