A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups

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Abstract

Due to the stricter government regulations on end-of-life product treatment and the increasing public awareness towards environmental issues, remanufacturing has been a significantly growing industry over the last decades, offering many potential business opportunities. In this paper, we investigate a crucial problem apparent in this industry, the remanufacturing lot-sizing problem with separate setups. We first discuss two reformulations of this problem, and remark an important property with regards to their equivalence. Then, we present a theoretical investigation of a related subproblem, where our analysis indicates that a number of flow cover inequalities are strong for this subproblem under some general conditions. We then investigate the computational effectiveness of the alternative methods discussed for the original problem. Detailed numerical results are insightful for the practitioner, indicating that in particular when the return variability increases or when the remanufacturing setup costs decrease relevant to manufacturing setup costs, the flow covers can be very effective.
LanguageEnglish
Pages276-285
Number of pages10
JournalInternational Journal of Production Economics
Volume203
Early online date6 Jul 2018
DOIs
Publication statusPublished - 30 Sep 2018

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Industry
Costs
Remanufacturing
Lot sizing
Theoretical analysis
Computational analysis
Setup cost
Government regulation
End of life
Environmental issues
Equivalence
Manufacturing

Keywords

  • lot-sizing
  • integer programming
  • extended reformulations
  • valid inequalities

Cite this

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title = "A theoretical and computational analysis of lot-sizing in remanufacturing with separate setups",
abstract = "Due to the stricter government regulations on end-of-life product treatment and the increasing public awareness towards environmental issues, remanufacturing has been a significantly growing industry over the last decades, offering many potential business opportunities. In this paper, we investigate a crucial problem apparent in this industry, the remanufacturing lot-sizing problem with separate setups. We first discuss two reformulations of this problem, and remark an important property with regards to their equivalence. Then, we present a theoretical investigation of a related subproblem, where our analysis indicates that a number of flow cover inequalities are strong for this subproblem under some general conditions. We then investigate the computational effectiveness of the alternative methods discussed for the original problem. Detailed numerical results are insightful for the practitioner, indicating that in particular when the return variability increases or when the remanufacturing setup costs decrease relevant to manufacturing setup costs, the flow covers can be very effective.",
keywords = "lot-sizing, integer programming, extended reformulations, valid inequalities",
author = "{Syed Ali}, {Sharifah Aishah Binti} and Mahdi Doostmohammadi and Kerem Akartunali and {van Der Meer}, Robert",
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AU - Doostmohammadi, Mahdi

AU - Akartunali, Kerem

AU - van Der Meer, Robert

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AB - Due to the stricter government regulations on end-of-life product treatment and the increasing public awareness towards environmental issues, remanufacturing has been a significantly growing industry over the last decades, offering many potential business opportunities. In this paper, we investigate a crucial problem apparent in this industry, the remanufacturing lot-sizing problem with separate setups. We first discuss two reformulations of this problem, and remark an important property with regards to their equivalence. Then, we present a theoretical investigation of a related subproblem, where our analysis indicates that a number of flow cover inequalities are strong for this subproblem under some general conditions. We then investigate the computational effectiveness of the alternative methods discussed for the original problem. Detailed numerical results are insightful for the practitioner, indicating that in particular when the return variability increases or when the remanufacturing setup costs decrease relevant to manufacturing setup costs, the flow covers can be very effective.

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KW - extended reformulations

KW - valid inequalities

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