Optimization of a reverse manufacturing system with multiple virtual inventories

Kenichi Nakashima, Surendra M. Gupta

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper deals with a cost management problem of a remanufacturing system with stochastic variability such as demand. We model the system with consideration for two types of inventories. One is the actual product inventory in a factory. The other is the virtual inventory that is used by 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 it the virtual inventory cost and model the system including it. We define the state of the remanufacturing system by the both of the inventory levels. It is assumed that the cost function is composed of various cost factors such as holding, backlog and some kinds of manufacturing costs etc. We obtain the optimal production policy that minimizes the expected average cost per period. Numerical results show the effects of the factors on the optimal policy.

Original languageEnglish
Title of host publication7th IFAC Conference on Manufacturing Modelling, Management, and Control, MIM 2013 - Proceedings
PublisherIFAC Secretariat
Pages99-104
Number of pages6
Edition9
ISBN (Print)9783902823359
DOIs
Publication statusPublished - 2013 Jan 1
Event7th IFAC Conference on Manufacturing Modelling, Management, and Control, MIM 2013 - Saint Petersburg, Russian Federation
Duration: 2013 Jun 192013 Jun 21

Publication series

NameIFAC Proceedings Volumes (IFAC-PapersOnline)
Number9
Volume46
ISSN (Print)1474-6670

Conference

Conference7th IFAC Conference on Manufacturing Modelling, Management, and Control, MIM 2013
CountryRussian Federation
CitySaint Petersburg
Period13/6/1913/6/21

Keywords

  • MDP
  • Optimal control
  • Virtual inventory

ASJC Scopus subject areas

  • Control and Systems Engineering

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  • Cite this

    Nakashima, K., & Gupta, S. M. (2013). Optimization of a reverse manufacturing system with multiple virtual inventories. In 7th IFAC Conference on Manufacturing Modelling, Management, and Control, MIM 2013 - Proceedings (9 ed., pp. 99-104). (IFAC Proceedings Volumes (IFAC-PapersOnline); Vol. 46, No. 9). IFAC Secretariat. https://doi.org/10.3182/20130619-3-RU-3018.00109