Abstract
Remanufacturing is a means of achieving environmental sustainability. However, uncertainties make remanufacturing investment decision more complex. This paper develops an investment model to find the optimal investment timing while taking returned quantity uncertainty into consideration. When the dynamics of the returned quantity follows Geometric Brownian Motion, the investment timing problem is analogous to an American call option with dividends problem. A numerical example is conducted to illustrate the proposed decision support model.
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Acknowledgements
The work was supported by National Science Council, Taiwan. (NSC101-2410-H-005-009-MY2)
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Tsai, MT. (2015). Investment Decision Model for Remanufacturing Under Return Uncertainty. In: Zhang, Z., Shen, Z., Zhang, J., Zhang, R. (eds) LISS 2014. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43871-8_29
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DOI: https://doi.org/10.1007/978-3-662-43871-8_29
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