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Sustainability 2017, 9(3), 338; doi:10.3390/su9030338

Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand

State Key Laboratory of Advanced Design and Manufacturing for Vehicle Body, Hunan University, Changsha 410082, Hunan, China
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Academic Editor: Tin-Chih Toly Chen
Received: 14 December 2016 / Revised: 18 January 2017 / Accepted: 20 February 2017 / Published: 24 February 2017
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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. View Full-Text
Keywords: remanufacture; CLSC; cyclic manufacturing; joint system; remanufacture-up-to; optimal policy; uncertainty remanufacture; CLSC; cyclic manufacturing; joint system; remanufacture-up-to; optimal policy; uncertainty
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MDPI and ACS Style

Liao, H.; Deng, Q.; Wang, Y. Optimal Acquisition and Production Policy for End-of-Life Engineering Machinery Recovering in a Joint Manufacturing/Remanufacturing System under Uncertainties in Procurement and Demand. Sustainability 2017, 9, 338.

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