Optimal manufacturing–remanufacturing policies in a lean production environment.pdf

Available online at Computers Industrial Engineering 55 (2008) 234–242 /locate/caie Optimal manufacturing–remanufacturing policies in a lean production environment Sergio Rubio a,*, Albert Corominas b,1 a University of Extremadura, School of Industrial Engineering, Avenida de Elvas s/n, 06071 Badajoz, Spain b Technical University of Catalonia, Institute of Industrial and Control Engineering, Avinguda Diagonal 647, Planta 11, 08028 Barcelona, Spain Received 20 July 2006; received in revised form 5 December 2007; accepted 12 December 2007 Available online 23 December 2007 Abstract This study analyses a production-management model that considers the possibility of implementing a reverse-logistics system for remanufacturing end-of-life products in a lean production environment (as opposed to models that use EOQ approaches). Decision variables are identified (including manufacturing and remanufacturing capacities and return rates and use rates for end-of-life products) and optimal policies are determined. Moreover, the structure of these optimal pol- icies is analysed. The conclusion drawn is that, in many realistic scenarios, mixed policies (that is, with return rates and use rates strictly between 0 and 1) can be optimal. This conclusion is contrary to results published in earlier studies, which are based on more restrictive assumptions. 2007 Elsevier Ltd. All rights reserved. Keywords: Reverse-logistics; Lean production; Remanufacturing; Supply chain management 1. Introduction According to Dowlatshahi (2005), r