Optimizing a Production-Inventory Systems with Deteriorating and Remanufacturing Products

Abstract

The environment is now a short-term priority of all projects that involves a supply chains sustainable. The concept of green supply chain can be measured by the ability in which companies can recycle or remanufacture products or items. Indeed, such a concern can reduce the use of extraction of natural resources, and this can surely reduce the environmental impact. Reverse processes is part of the process to reduce this drawback. A linear quadratic stochastic problem subject to production-inventory systems is formulated. The objective of this problem is to meet the demand for a product that can be remanufactured after used. This product can be deteriorated over a period of time and also be remanufactured to be reused. Assuming the demand as stationary and normally distributed, an associated equivalent deterministic problem is introduced. From this last problem, optimal inventory-production scenarios can be created by variation of parameters such as: return rate of used products, delay of return, or even both. A simple hypothetical example illustrates the use of these scenarios for decision-making.