As market demand for remanufactured products increases and environmental legislation puts further enforcement on original equipment manufacturers (OEMs), remanufacturing is becoming an important business. However, profitability of salvaging operations is still a challenge in remanufacturing industry. Several factors influence the cost effectiveness of remanufacturing operations, including uncertainties in the quantity of return flows and market demand as well as variability in the quality of received items. The objective of this paper is to develop a stochastic optimization model based on chance-constrained programming to deal with these sources of uncertainties in take-back and inventory planning systems. The main purpose of the model is to determine the best upgrade level for a received product with certain quality level with the aim of maximizing profit. An example of personal computer is provided to show the application of the method.
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June 2015
Research Papers
Uncertainty Management in Remanufacturing Decisions: A Consideration of Uncertainties in Market Demand, Quantity, and Quality of Returns
A. Raihanian Mashhadi
,
A. Raihanian Mashhadi
Mechanical and Aerospace Engineering Department,
University at Buffalo, SUNY
, Buffalo, NY 14260-1660
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Behzad Esmaeilian
,
Behzad Esmaeilian
Mechanical and Industrial Engineering Department,
Northeastern University
, Boston, MA 02115
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Sara Behdad
Sara Behdad
Mechanical and Aerospace Engineering Department;
Industrial and Systems Engineering Department,
University at Buffalo, SUNY
, Buffalo, NY 14260-1660
Search for other works by this author on:
A. Raihanian Mashhadi
Mechanical and Aerospace Engineering Department,
University at Buffalo, SUNY
, Buffalo, NY 14260-1660
Behzad Esmaeilian
Mechanical and Industrial Engineering Department,
Northeastern University
, Boston, MA 02115
Sara Behdad
Mechanical and Aerospace Engineering Department;
Industrial and Systems Engineering Department,
University at Buffalo, SUNY
, Buffalo, NY 14260-1660
Manuscript received September 28, 2014; final manuscript received February 3, 2015; published online April 20, 2015. Assoc. Editor: Athanasios Pantelous.
ASME J. Risk Uncertainty Part B. Jun 2015, 1(2): 021007 (8 pages)
Published Online: April 20, 2015
Article history
Received:
September 28, 2014
Revision Received:
February 3, 2015
Accepted:
February 5, 2015
Online:
April 20, 2015
Citation
Mashhadi, A. R., Esmaeilian, B., and Behdad, S. (April 20, 2015). "Uncertainty Management in Remanufacturing Decisions: A Consideration of Uncertainties in Market Demand, Quantity, and Quality of Returns." ASME. ASME J. Risk Uncertainty Part B. June 2015; 1(2): 021007. https://doi.org/10.1115/1.4029759
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