Optimal manufacturing/remanufacturing policies with fixed investment for the underdeveloped remanufacturing system

Lv, X; Huang, JH; Liu, HB

Optimal manufacturing/remanufacturing policies with fixed investment for the underdeveloped remanufacturing system

Lv, X Huang, JH Liu, HB

Permalink

Publication Type:: Journal Article
Citation:: Tehnicki Vjesnik, 2017, 24 (5), pp. 1491 - 1499
Issue Date:: 2017-10-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download Published VersionAdobe PDF (1 MB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Lv, X	en_US
dc.contributor.author	Huang, JH	en_US
dc.contributor.author	Liu, HB	en_US
dc.date.issued	2017-10-01	en_US
dc.identifier.citation	Tehnicki Vjesnik, 2017, 24 (5), pp. 1491 - 1499	en_US
dc.identifier.issn	1330-3651	en_US
dc.identifier.uri	http://hdl.handle.net/10453/127351
dc.description.abstract	© 2017, Strojarski Facultet. All rights reserved. In an underdeveloped remanufacturing system, poor infrastructure and low technical level impede further development of remanufacturing. To overcome this obstacle, a huge amount of fixed investment is required to improve the remanufacturing system. However, this investment inevitably influences the manufacturer’s manufacturing/remanufacturing decision-making economically. The relationship between fixed investment and recycling ratio was investigated, and the two- and multi-period manufacturing/remanufacturing mixed optimization models were developed. Based on the Karush-Kuhn-Tucker (KKT) conditions, the optimal manufacturing/remanufacturing and fixed investment policies were obtained in closed-form expressions. Moreover, the influences of the fixed investment were analysed. Results show that the optimal policies are significantly influenced by the degree of underdevelopment of the remanufacturing system. When the remanufacturing system is underdeveloped, the manufacturer shows a lack of enthusiasm in remanufacturing, thereby resulting in the decrease of the investment and the recycling ratio. The manufacturer raises the sale price to alleviate the loss caused by fixed investment, but the total manufacturing quantity and profit decrease. In the multi-period case, the manufacturer gradually increases the investment for continuously improving the remanufacturing system to increase the recycling ratio and obtain additional profits from remanufacturing. The proposed models can effectively provide the reference for determining the reasonable manufacturing/remanufacturing and fixed investment policies in the underdeveloped remanufacturing system.	en_US
dc.relation.ispartof	Tehnicki Vjesnik	en_US
dc.relation.isbasedon	10.17559/TV-20170829170855	en_US
dc.title	Optimal manufacturing/remanufacturing policies with fixed investment for the underdeveloped remanufacturing system	en_US
dc.type	Journal Article
utslib.citation.volume	5	en_US
utslib.citation.volume	24	en_US
utslib.for	1599 Other Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Students
utslib.copyright.status	open_access
pubs.issue	5	en_US
pubs.publication-status	Published	en_US
pubs.volume	24	en_US

Abstract:

© 2017, Strojarski Facultet. All rights reserved. In an underdeveloped remanufacturing system, poor infrastructure and low technical level impede further development of remanufacturing. To overcome this obstacle, a huge amount of fixed investment is required to improve the remanufacturing system. However, this investment inevitably influences the manufacturer’s manufacturing/remanufacturing decision-making economically. The relationship between fixed investment and recycling ratio was investigated, and the two- and multi-period manufacturing/remanufacturing mixed optimization models were developed. Based on the Karush-Kuhn-Tucker (KKT) conditions, the optimal manufacturing/remanufacturing and fixed investment policies were obtained in closed-form expressions. Moreover, the influences of the fixed investment were analysed. Results show that the optimal policies are significantly influenced by the degree of underdevelopment of the remanufacturing system. When the remanufacturing system is underdeveloped, the manufacturer shows a lack of enthusiasm in remanufacturing, thereby resulting in the decrease of the investment and the recycling ratio. The manufacturer raises the sale price to alleviate the loss caused by fixed investment, but the total manufacturing quantity and profit decrease. In the multi-period case, the manufacturer gradually increases the investment for continuously improving the remanufacturing system to increase the recycling ratio and obtain additional profits from remanufacturing. The proposed models can effectively provide the reference for determining the reasonable manufacturing/remanufacturing and fixed investment policies in the underdeveloped remanufacturing system.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/127351