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

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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.
Original languageEnglish
Pages (from-to)276-285
Number of pages10
JournalInternational Journal of Production Economics
Early online date6 Jul 2018
Publication statusPublished - 30 Sept 2018


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


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