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The Value of Sampling Inspection in a Single-Period Remanufacturing System with Stochastic Returns Yield

  • Christos Zikopoulos
  • Sofia Panagiotidou
  • George Nenes
Part of the IFIP Advances in Information and Communication Technology book series (IFIPAICT, volume 338)

Abstract

We examine a reverse supply chain consisting of a collection site, where consumers return used products, and a remanufacturing facility. Some of the returned products are transported to the remanufacturing facility in order to be remanufactured and used to satisfy the stochastic demand for remanufactured products. The quality of returns is characterized by uncertainty, and therefore, before the procurement quantity determination, the remanufacturer has the alternative to inspect a sample drawn from the collected quantity in order to evaluate more accurately returns’ quality. Using general assumptions for returns quality and remanufactured products demand distributions, we formulate the expected profit function for both sampling and no-sampling cases and we examine numerically the economic effectiveness of sampling. A key characteristic of the current paper is that returns’ yield is expressed as the probability of a unit to be remanufacturable.

Keywords

reverse supply chain random yield sampling inspection binomial yield value of information 

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Copyright information

© IFIP International Federation for Information Processing 2010

Authors and Affiliations

  • Christos Zikopoulos
    • 1
  • Sofia Panagiotidou
    • 1
  • George Nenes
    • 1
  1. 1.Department of Mechanical EngineeringAristotle University of ThessalonikiThessalonikiGreece

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