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Upgrade Planning of Used Products Considering Uncertainty in Market Demand, Quantity and Variability in Quality of Returns

[+] Author Affiliations
Ardeshir Raihanian Mashhadi, Sara Behdad

University at Buffalo—SUNY, Buffalo, NY

Paper No. DETC2014-34309, pp. V004T06A006; 9 pages
doi:10.1115/DETC2014-34309
From:
  • ASME 2014 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference
  • Volume 4: 19th Design for Manufacturing and the Life Cycle Conference; 8th International Conference on Micro- and Nanosystems
  • Buffalo, New York, USA, August 17–20, 2014
  • Conference Sponsors: Design Engineering Division, Computers and Information in Engineering Division
  • ISBN: 978-0-7918-4635-3
  • Copyright © 2014 by ASME

abstract

Remanufacturing is becoming an important business as market demand for remanufactured products increases and environmental legislation puts further enforcement on Original Equipment Manufacturers (OEMs). However, profitability of salvaging operations is still a challenge in remanufacturing industry. Several factors influence the cost effectiveness of remanufacturing operations, including variability in the quality of received used items and uncertainty in the quantity of return flows and the market demand for those products. Remanufacturing companies need to handle these sources of uncertainties in order to improve their profitability. The current paper develops a Stochastic Optimization method to model these sources of uncertainties in take-back and inventory planning systems. The main purpose of the model is to determine the best upgrade level for a received product with certain quality level with the aim of profit maximization. An example of personal computer is provided to show the application of the method.

Copyright © 2014 by ASME
Topics: Uncertainty

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