Abstract
The intensive shortage of natural resources and the inchoate phase of automobile remanufacturing in a closed-loop supply chain (CLSC) are driving people to take cyclic manufacturing seriously. Aiming at maximizing resource utilization and produce profits, we apply an optimizing mathematical analysis to the modeling of automobile engine remanufacturing in a joint manufacturing system, in which the quantity and quality of procurement, and the demand of the market, are both uncertain. The manufacturer can either produce new products with raw materials or remanufacture the returned product taken back from customers; the raw materials are bought from two suppliers with certain probabilities of disruption in the supply. The returned products are classified into different quality levels according to the testing results after sorting, by considering the remanufacture-up-to strategy we obtained the optimal remanufacturing ratio, then the manufacturing quantity and corresponding maximized total profit of this joint system are determined. We also investigated a real-life case of auto engine remanufacturing, comparing it with the theory of optimal remanufacturing policy, and the results indicate that a material savings of more than 45% and a cost improvement of more than 40% could be achieved when the optimal remanufacturing policy of our model is implemented.
Highlights
In recent decades, with the rapid development of modern industry, resource depletion and energy crises have become increasingly prominent, which is threatening our existence because of excessive natural resource exploitation
We extended a joint remanufacturing model to take the uncertainty in acquired products into consideration aiming at addressing this gap; in particular, in this model of the automotive remanufacturing industry, we focus on the mathematical method of the problem of the economic order quantity in a joint system based on the model evolved in light of the actual situation of the Chinese remanufacturing environment
We applied the probability theory to analyze the effect of uncertainty on CLCS, developed the model where the quality level factor is a variable that shows a continuous change, and by the characteristics of remanufacturing we can conclude that the remanufacture cost changing trend is similar to that of the quality level factor, namely C1r < C2r < C3r... < CQr a
Summary
With the rapid development of modern industry, resource depletion and energy crises have become increasingly prominent, which is threatening our existence because of excessive natural resource exploitation. Et al [16] have explored a third-party retailer pricing strategy for a multi-product SC model in which the policy estimation is proposed by using different price approximations and the demand elasticity theory These studies have primarily put their emphasis on economic efficiency, leaving important problems relating to the equilibrium between the manufacturing and recycling in automobile industries unaddressed. By predicting the relevant wholesale price manufacturer can maximize his profit This system does not involve the research on the impact of uncertainty in procurement and market demands on the inventory and penalty costs, it provides a reference for us to study the effect of joint price-making on production strategies in a joint remanufacturing system.
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