Managing cores for remanufacturing during the product life cycle
(English)Manuscript (preprint) (Other academic)
In this paper, we develop a strategic decision model for a remanufacturer who faces the constraints of changing demands for remanufactured products and changing availability of cores. The remanufacturer decides on core collecting and remanufacturing to maximize its profit over the whole product life cycle. In the objective function, the remanufacturing cost is set as a convex decreasing function with respect to core inventory, to reflect the observations from industrial practice. Possible forms of the optimal control policies are analyzed using the optimal control theory. According to such properties and also the observations from numerical examples, a heuristic method is developed and shown to perform well. We further use this heuristic method in various numerical experiments with the background of component remanufacturing. According to the experiments, the remanufacturer should collect as many cores as possible in the beginning, with the exception of a high price of collecting cores; not all demand should be met at the beginning until enough cores are collected. In the late stage of the product life cycle, the time to stop collecting cores can be greatly affected by different remanufacturing costs and different life lengths of original products as well. Moreover, cores from failed parts need more attention than cores from disposed products, because they are more effective in balancing the demand for remanufactured products and the availability of cores.
Remanufacturing, core management, product life cycle, optimal control
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-113246OAI: oai:DiVA.org:liu-113246DiVA: diva2:779832