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Production planning and inventory control in hybrid systems with remanufacturing

Author: Laan, E. van der ; Salomon, M. ; Dekker, R.INSEAD Area: Technology and Operations Management Series: Working Paper ; 96/40/TM Publisher: Fontainebleau : INSEAD, 1996.Language: EnglishDescription: 23 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This paper is on production planning and inventory control in systems where manufacturing and remanufacturing operations occur simultaneously. Typical for these hybrid systems is, that both the output of the manufacturing process and the output of the remanufacturing process can be used to fulfil customer demands. We consider a simple hybrid system, related to a single component durable product. We present a methodology to analyse a PUSH control strategy (in which all returned products are remanufactured as early as possible) and a PULL control strategy (in which all returned products are remanufactured as late as convenient). This methodology combines the evaluation of the long-run and the transient behavior of various continuous time Markov Chain models. We also compare traditional systems without remanufacturing to PUSH and PULL controlled systems with remanufacturing. We advice management on various actions that could be taken to reduce production and inventory related costs in hybrid systems
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This paper is on production planning and inventory control in systems where manufacturing and remanufacturing operations occur simultaneously. Typical for these hybrid systems is, that both the output of the manufacturing process and the output of the remanufacturing process can be used to fulfil customer demands. We consider a simple hybrid system, related to a single component durable product. We present a methodology to analyse a PUSH control strategy (in which all returned products are remanufactured as early as possible) and a PULL control strategy (in which all returned products are remanufactured as late as convenient). This methodology combines the evaluation of the long-run and the transient behavior of various continuous time Markov Chain models. We also compare traditional systems without remanufacturing to PUSH and PULL controlled systems with remanufacturing. We advice management on various actions that could be taken to reduce production and inventory related costs in hybrid systems

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