Abstract
This paper develops the remanufacturing inventory model considering the storage capacity. The suggested model aims to minimize the total inventory cost (TIC). The model used the EOQ model, one of the basic inventory models in the supply chain. Numerical experiments and sensitivity analyses were carried out on models developed using the Lagrangean method. The existence of constraints in storage capacity can produce an optimal quantity of remanufacturing while minimizing inventory costs. This study also indicates that there is an impact between warehouse capacity, number of cycles, backorder costs, and the level of product collection on total inventory costs, and provides management implications that companies can make appropriate policies to minimize total inventory cost.
Highlights
Remanufacturing activity is one of the advanced processes in reverse logistics activities
Where to use the different storage capacities in the 10 experiments performed. It will be calculated the amount of the quantity remanufactured, the total cost of inventory (TIC) in the two situations: with and without storage limitation
This study developed a model for remanufacturing inventory considering storage capacity
Summary
Remanufacturing activity is one of the advanced processes in reverse logistics activities. Previous research by Hasanov et al [6] modeled production supplies and remanufacturing processes by applying full and partial backorder to meet consumer demand indicating that the need for storage capacity is very important in making remanufacturing models related to the amount and cost of inventory. This article integrates inventory models in remanufacturing networks by considering the capacity constraints of storage to minimize the total cost of remanufacturing.
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