Abstract
In this paper the performance of an extended MRP approach (MRRP) for a hybrid single-stage production/remanufacturing system with external return flows is examined. All costs are assumed to be strictly proportional so that a lot-for-lot ordering policy applies. A scenario with stochastic demands and returns and deterministic processing times of equal length for both production and remanufacturing forms the basis of the analysis. Additionally, cases of unequal and stochastic processing times are considered. It turns out that application of MRRP leads to near-optimal results. MRRP even outperforms optimized pull control rules from Stochastic Inventory Control (SIC) if the leadtimes differ considerably.
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Gotzel, C., Inderfurth, K. (2002). Performance of MRP in Product Recovery Systems with Demand, Return and Leadtime Uncertainties. In: Klose, A., Speranza, M.G., Van Wassenhove, L.N. (eds) Quantitative Approaches to Distribution Logistics and Supply Chain Management. Lecture Notes in Economics and Mathematical Systems, vol 519. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-56183-2_7
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DOI: https://doi.org/10.1007/978-3-642-56183-2_7
Publisher Name: Springer, Berlin, Heidelberg
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