Supply planning model for remanufa cturing system in reverse logistics e

nvironmentAuthors: Kibum Kim, Iks

oo Song, Juyong Kim, Bo ngju Jeong

Journal of Computers and Industrial Engineering

Presentation: Jirawan Niemsakul (January 28, 2011)

Conclusions Conclusions

Contents

Introduction

Supply planning model

An illustrative example

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22

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1. Introduction

Reverse logistics can be defined as the logistics activities all the way from u

sed products no longer required by t he customer to products again usabl

e in the market.

1. Introduction

Increased environmental concerns

Stringent environmental laws.

MotivationMotivation

1. Introduction

Reuse

Recycling

Remanufacturing

Reverse logistics Reverse logistics categoriescategories

1. Introduction

Remanufacturing,Remanufacturing, is an industrial process in which worn-out products are restored to like-new condition, such as electronic machine,

toner cartridge, and automobile part.

Discarded products are completely disassembled through a series of industrial process in

factory environment. Usable parts are cleaned, refurbished, and put into part inventory.

Then the new product is reassembled from the old and, new parts to produce a fully

equivalent and superior in performance and expected lifetime to the original new product

2. Supply planning model

2.1 Framework for 2.1 Framework for remanufacturing systemremanufacturing system

2. Supply planning model

2.2 Formulation of model (Mixed-integer 2.2 Formulation of model (Mixed-integer Programming)Programming)Objective: Minimize total remanufactu

ri ngcost

Decision:

1. H ow many returned products should be throw n into the remanufacturing process such as refur

bishing and disassembling for ‘as new’ condi t i on?

2. H ow many new parts need to be purchased fro mthe external suppl i er ?

2. Supply planning model

Indices:

p = Product index, p = { 1,…..,P }i = Part index, i = { 1,…..,I }t = Time period, t = { 1,…..,T }

2. Supply planning model

Parameters:

2. Supply planning model

Decision Variables:

2. Supply planning model

Objective Function:

2. Supply planning model

Subject To:

2. Supply planning model

Subject To:

3. An illustrative example

T here are three types of products and five types of parts f rom - those products, and 10 time periods for plannin

g horizon.

3. An illustrative example

The quantity of parts requirement is generated as many as 1 .5 times of the quantity of collected pro ducts so that external

suppl i er may suppl y the shortage of remanufact uri ngquanti ty.

3. An illustrative example

The capacity of remanufacturing facility foreach individ ualproduct orpart type is set to be 1 5 0 and 9 0 0 u nits of product forcollectionand disassembly site, respect

ively, and 1 0 0 0 units of part forrefurbishing site.

T he unit purchasing cost is set to be 4 0 , 3 0 , 2 0 , 3 0 , and 2 0 dollars foreachpart type and the idle cost

of the disassembly facility and refurbishing facility are set to be 2 0 0 0 and 2 5 0 0 dollars, respectively.

The upperbound fordisposal rate of disassembled part i s set to be 0 .1 5 forallparts by whichusually company

wants to reduce remanufacturing inefficiency.

Otherrelevant cost data are also generated but not sho wnhere. Initial inventory foreachpart is set as 5 0 0 un

its.

3. An illustrative example

Example Results:

3. An illustrative example

Example Results:

3. An illustrative example

3. An illustrative example

3. An illustrative example

4. Conclusions

The research results can be guidelines on the relevant research. The proposed remanufacturing fr

amework and model can be applicable to the va ri ous i ndustri es.

A proposed model is introduced in terms of a general framework, many future works are acco rdi ngl y needed.

T he proposed model is formulated as mixed in teger programming, the computational burden

for optimal solution increases exponentially as the si ze of problemincreases.

A n efficient heuristic algorithm needs to be d - eveloped in order to solve the large scale problems i

n real business environment.