Abstract
This paper deals with the problem of integrated production and maintenance planning with different qualities of returned products and outsourcing opportunities in a closed-loop supply chain context. The considered network consists of one manufacturer in a relationship with an outsourcing provider. The manufacturer is considered as hybrid manufacturing-remanufacturing system. It produces the new products and collects returned ones for remanufacturing activities. The outsourcing provider specializes in the remanufacturing of returned products from the collection and sorting center that the manufacturer is unable to reprocess. We propose an integrated control policy based on mathematical programming, which aims to determine the integrated production and maintenance planning in a hybrid manufacturing-remanufacturing context with outsourcing options. The proposed strategy minimizes the total cost of the system over a finite planning horizon, including manufacturing, in-house remanufacturing, outsourced remanufacturing, maintenance, holding, backlogging, and disposal costs. To show the applicability and validity of the developed model, we implement an iterative procedure using Matlab and CPLEX solver of GAMS. We conduct and discuss computational experiments to investigate managerial insights for the newly developed integrated strategy.
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