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Economic Lot Scheduling Problem with Returns
Author(s) -
Tang Ou,
Teunter Ruud
Publication year - 2006
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.1937-5956.2006.tb00158.x
Subject(s) - remanufacturing , computer science , scheduling (production processes) , integer programming , mathematical optimization , operations research , job shop scheduling , operations management , manufacturing engineering , economics , mathematics , engineering , schedule , algorithm , operating system
Motivated by a case study of a company that produces car parts, we study the multi‐product economic lot scheduling problem for a hybrid production line with manufacturing of new products and remanufacturing of returned products. For this economic lot scheduling problem with returns (ELSPR), we consider policies with a common cycle time for all products, and with one manufacturing lot and one remanufacturing lot for each product during a cycle. For a given cycle time, the problem is formulated as a mixed integer linear programming (MIP) problem, which provides the basis for an exact solution. The application of this model for one of the core products of the case study company indicates a 16% reduction in cost compared to the current lot scheduling policy.