Abstract
In the green manufacturing system that pursues the reuse of used products, the residual value of collected used products (CUP) hugely affects a variety of managerial decisions to construct profitable and environmental remanufacturing plans. This paper deals with a closed-loop green manufacturing system for companies which perform both manufacturing with raw materials and remanufacturing with collected used products (CUP). The amount of CUP is assumed as a function of buy-back cost while the quality level of CUP, which means the residual value, follows a known distribution. In addition, the remanufacturing cost can differ according to the quality of the CUP. Moreover, nowadays companies are subject to existing environment-related laws such as Extended Producer Responsibility (EPR). Therefore, a company should collect more used products than its obligatory take-back quota or face fines from the government for not meeting its quota. Through the development of mathematical models, two kinds of inspection policies are examined to validate the efficiency of two different operation processes. To find a managerial solution, a genetic algorithm is proposed and tested with numerical examples.
Highlights
We deal with a closed-loop green manufacturing system for a company which performs both manufacturing with raw materials and remanufacturing with used products where remanufacturing costs differ according to the quality of the collected used products (CUP)
To evaluate the efficiency of the two inspection policies, inspection before/after purchase, mathematical models containing decision variables of unit buy-back cost and minimum quality level are developed with the objective of maximizing total profit
An efficient genetic algorithm is proposed as a solution methodology to find an optimal or near-optimal value for these decision variables
Summary
Manufacturers are currently seeking continuous growth while minimizing adverse environmental effects from their production activities. They have heavily investigated developing state-of-the-art production technologies that could replace current non eco-friendly production methods. Companies try to use reproduced materials as raw materials in their production processes as much as possible if they do not result in negative effects on the quality of the final products. It can increase the profit margins of a company and ensure the prevention of environmental pollution
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