Production Planning of a Dynamic Hybrid Manufacturing/Remanufacturing System Considering Pricing and Warranty Decisions Under Competition Between New and Remanufactured Products

Document Type : Research Paper

Authors

Assistant Professor, Department of Industrial Engineering, Faculty of Technology and Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract

With the increase in environmental pollution due to the disposal of used products in the environment, recovery of such products at the end of their life cycle has become one of the important issues in the field of reverse logistics and sustainable production. Remanufacturing is one of the options for used products recovery with high economic advantages and the least harmful environmental effects. The simultaneous planning of the production of new products and remanufacturing of used ones forms a combined manufacturing/remanufacturing system, which is among the complex issues in the field of production systems planning. The combined pricing, warranty, and competition considerations has so far not been seriously investigated in this field. The aim of this research is to create an optimal production plan for a multi-period hybrid manufacturing/remanufacturing system, where the producer decides on the price, the amount of production and the warranty period for both new and remanufactuted products. To achieve this goal, a multi-period mixed integer non-linear programming (MINLP) model is built. Only new products are produced and sold in the first period, then the used products (cores), in different quality levels, are purchased from customers in the following periods, and hence, remanufacturing is added to the model. Both types of products are sold in the same market, so there is competition between them to gain more market share. Due to the complexity of the developed model, particle swarm optimization (PSO), and simulated annealing (SA) algorithms are used for its solution. Numerical results show the efficiency and effectiveness of the proposed model and solution approaches.

Keywords

Main Subjects

References

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Journal of Industrial Engineering Research in Production Systems
Volume 11, Issue 23
March 2024
Pages 21-37

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