IIE Transactions · 2004 · 202 citations · 16 references
EngineeringManufacturing EngineeringOperations ManagementProduction EngineeringProduction PlanningProduction SystemsProduct Life Cycle ManagementRecyclingReturns ManagementWaste ReductionContinuous-time Markov ChainsContinuous-time Markov ProcessesDisposalDisposal DecisionsManufacturingRemanufacturingRemanufacturing OperationsRemanufacturing Systems
An increasing number of companies have been implementing comprehensive recycling and remanufacturing programs. These endeavors typically involve the operation of joint manufacturing and remanufacturing systems. One of the major challenges in managing such hybrid systems is the stochastic nature of product returns. In particular, there is significant variability in the condition of the returns. This paper presents an approach for assessing the impact of quality-based categorization of returned products. Through extensive numerical studies on a continuous-time Markov chain model, we show that incorporation of returned product quality in the remanufacturing and disposal decisions can lead to significant cost savings. We find that these savings are amplified as the return quality decreases, and as the return rate increases. We also show that prioritizing higher quality returns in remanufacturing is, in general, a better strategy.
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Introduction to Probability Models
RL, Sheldon M. Ross · Journal of the American Statistical Association · 1998 · 1.5K citations
Strategic Issues in Product Recovery Management
Martijn Thierry, Marc Salomon, Jo van Nunen et al. · California Management Review · 1995 · 1.4K citations · Full text