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CAPACITATED REMANUFACTURING WITH SERVICE LEVEL CONSTRAINTS*
Author(s) -
SOUZA GILVAN C.,
KETZENBERG MICHAEL E.,
GUIDE V. DANIEL R.
Publication year - 2002
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.2002.tb00493.x
Subject(s) - remanufacturing , heuristics , queueing theory , service (business) , computer science , product (mathematics) , service level , operations research , theory of constraints , production (economics) , constraint (computer aided design) , process (computing) , key (lock) , operations management , business , manufacturing engineering , marketing , microeconomics , economics , mathematics , engineering , computer network , geometry , computer security , operating system
This research examines production planning and control for a remanufacturer that can sell returned items on a graded as‐is basis or remanufacture the returned items. Using a GI/G/1 queuing network, we model the firms decision to remanufacture an optimal product mix over the long run that maximizes profits while maintaining a desired service level. We further use simulation to explore dispatching heuristics that can be used at the shop‐floor level to achieve the desired optimal product mix, while meeting the service level constraint. Our research is grounded in actual practice and the results provide key insights into the decision‐making process required to maximize profits and minimize average flow times for remanufactured products.