Inventory Model for the Batch Processing of Defective Products in Manufacturing and Remanufacturing

Abstract:

This study focuses on simple stationary demand satisfied by the remanufacturing of products and the manufacture of new products. Further, we presented how to use batch processing to reduce defective products in the remanufacturing and the manufacturing inventory. In this paper, we obtain the economic order quantity of new products and the optimal inventory level of products that have been remanufactured as well as the appropriate return rate for the economic order quantity and the economic remanufacturing quantity. We analyze an inventory system with unit product returns and demands wherein manufacturing is the cheaper alternative to remanufacturing. However, because demand exceeds the rate of return of defective products, remanufacturing of products is also required.

• Periodical: Advanced Materials Research (Volumes 756-759)
• Pages: 4604-4611
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.756-759.4604
• Online since: September 2013
• Authors: Chi Chung Lin, Chwen Tzeng Su
• Keywords: Defective Product, Inventory System, Remanufacturing Industry, Supply Chain Management

References

[1] Carter, C.R. and Ellram, L.M., 1998. Reverse logistics: A review of the literature and framework for future investigation. Journal of Business Logistics 19(1), 85–102.

[2] Fleischmann, M., Bloemhof-Ruwaard, J.M., Dekker, R., van der Laan, E., van Nunen, J.A.E.E., and van Wassenhove, L.N., 1997. Quantitative models for reverse logistics: A review. European Journal of Operation Research 103(1), 1–17.

DOI: 10.1016/s0377-2217(97)00230-0

[3] Mahadevan, B., Pyke, D.F., and Fleischmann, M., 2003. Periodic review push inventory policies for remanufacturing. European Journal of Operational Research 151, 536–551.

DOI: 10.1016/s0377-2217(02)00627-6

[4] van der Laan, E.A. and Ruud, H.T., 2006. Simple heuristics for push and pull remanufacturing policies. European Journal of Operation Research 175, 1084–1102.

DOI: 10.1016/j.ejor.2005.06.030

[5] Chi-Chung Lin, Chun-Wei Lin, Defective item inventory model with remanufacturing or replenishing in an integrated supply chain, International Journal of Integrated Supply Management, Vol. 6, Nos. 3/4, (2011).

DOI: 10.1504/ijism.2011.044889

[6] Ming-Wei Weng, Rung-Hung Su, Determining The Optimal Production Lot Size For Two-Stage Production System With Allowable Shortage, Imperfect Processes And Rework, IJEI: International Journal of Engineering and Industries, Vol. 3, No. 2, p.53 ~ 64, (2012).

DOI: 10.4156/ijei.vol3.issue2.7

[7] Qi Lian, Suling Jia, Research on Two-stage Supply Chain Ordering Strategy Optimization Based on System Dynamics, AISS: Advances in Information Sciences and Service Sciences, Vol. 4, No. 23, p.16 ~ 24, (2012).

DOI: 10.4156/aiss.vol4.issue23.2

[8] Chi-Chung Lin, Chwen-Tzeng Su, Choosing the Best Supplier using the TOPSIS Method and Improving Deteriorated or Defective Inventory with Batch Processing, IJACT: International Journal of Advancements in Computing Technology, Vol. 4, No. 23, p.600 ~ 608, (2012).

DOI: 10.4156/ijact.vol4.issue23.72

[9] Salameh, M.K. and Jaber, M.Y., 2000. Economic production quantity model for items with imperfect quantity. International Journal of Production Economics 64, 59–64.

DOI: 10.1016/s0925-5273(99)00044-4