Abstract

We discuss five areas of inventory model, including reusable raw material, EPQ model, optimization, random planning horizon and present value. In the traditional EPQ model, the stock-holding cost of raw material was not counted as a part of relevant cost. We explored the possibility of reducing a company’s impact on the environment and increasing their competitiveness by recycling their repair and waste disposal. The products are manufactured with reusable raw material. Our analysis takes into account the time value, and the present value method is applied to determine the optimal inventory policies for reusable items with random planning horizon. Results show how the heuristic approach can achieve global optimum. Numerical examples are given to validate the proposed system.

Highlights

  • Reuse of material and products is not a new subject

  • Koh et al [5] found a joint EOQ and EPQ model in which a fixed proportion of the used products is collected from customers and recovered for reuse

  • Using the upper and lower bounds, an algorithm of computing the optimal cycle time is developed. These numerical examples are brought into the algorithm to find the different cycle time

Read more

Summary

Introduction

Using the repaired and new made products, Richter [1] has created a model for fixed and variable collection time interval to minimize the cost and found the optimal collection intervals. Up to now Salameh & El-Kassar [8] had the paper to establish an EPQ model taking the stock-holding cost of raw material into consideration and found the optimal lot size. Moon and Yun [12] have justified the optimality of solutions which are derived from the first order conditions in Kim, Philippatos and Chung [14]. Using the upper and lower bounds, an algorithm of computing the optimal cycle time is developed. These numerical examples are brought into the algorithm to find the different cycle time.

The Models
D P rD s
Numerical Examples
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call