Optimal production policy for a remanufacturing system with virtual inventory cost

Kenichi Nakashima

Research output: Contribution to journalConference article

Abstract

This paper deals with a cost management problem of a remanufacturing system with stochastic demand. We model the system with consideration for two types of inventories. One is the actual product inventory in the factory. The other is the virtual inventory that is being used by the customer. For this virtual inventory, it should be required to consider an operational cost that we need in order to observe and check the quantity of the inventory. We call this the virtual inventory cost and model the system by including it. We define the state of the remanufacturing system by the two inventory levels. It is assumed that the cost function is composed of various cost factors such as holding, backlog and manufacturing costs. We obtain the optimal policy that minimizes the expected average cost per period. Numerical results reveal the effects of the factors on the optimal policy.

Original languageEnglish
Article number59970H
JournalProceedings of SPIE - The International Society for Optical Engineering
Volume5997
DOIs
Publication statusPublished - 2005 Dec 1
Externally publishedYes
EventEnvironmentally Conscious Manufacturing V - Boston, MA, United States
Duration: 2005 Oct 232005 Oct 24

Fingerprint

Remanufacturing
costs
Costs
Optimal Policy
Stochastic Demand
Average Cost
Cost functions
Industrial plants
Policy
industrial plants
Cost Function
manufacturing
Customers
Manufacturing
Minimise
Numerical Results
products
Model

Keywords

  • Optimal control
  • Product life cycle
  • Remanufacturing system

ASJC Scopus subject areas

  • Electrical and Electronic Engineering
  • Condensed Matter Physics

Cite this

Optimal production policy for a remanufacturing system with virtual inventory cost. / Nakashima, Kenichi.

In: Proceedings of SPIE - The International Society for Optical Engineering, Vol. 5997, 59970H, 01.12.2005.

Research output: Contribution to journalConference article

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