Cost Optimization In Product Remanufacturing/ Remanufacturing Considering Reverse Logistics Inventory

With the threat of resource depletion increases in recent years, more and more people realize the importance of environmental protection. A growing number of laws and regulations related to the environment require manufacturers to be responsible for the entire product life cycle. It is the pressure from environmental laws and impetus of economic interests that make the reverse logistics become an important issue. Now business managers and relevant academic researchers concern the reverse logistics management which is in opposition direction with traditional supply chain. In the paper, we study the cost optimization problem of reverse logistics in remanufacturing environment.This paper firstly introduces the concept of new hybrid remanufacturing production:we don’t distinguish between new and remanufactured parts in the production process. Namely, the spare parts for production preparation in warehouse are undifferentiated, so that they are both consumed in the production process. In other words, the new product contains both new parts and remanufactured parts. Under this condition, we consider the case of remanufacturing with insufficient actual recovery capacity, and establish a new model of product/remanufacturing process system. According to the model, we build the production cost function, and create analysis for its characteristics as well as optimization.We also give a new meaning to the uncertainty of recycling product quality in the paper-the uncertainty of recycling product quality is the uncertainty of recycling quality distribution function inherently. In fact, the quality of recycling products is uncertain, and the quality distribution function could be obtained through statistical investigation. However, the results of the survey, after all, is obtained in a certain sample, the limited statistical sample determines the error of quality distribution function itself. Because of this recognition, we regard the uncertainty of recycling product quality as the uncertainty of quality distribution function itself. Therefore the introduction of a nondeterministic function contributes to measure the probability and the uncertainty of a certain quality. After introducing this function into the cost function, we explore the influence of the introduction of quality uncertainty function by analyzing the change of the cost function.Finally, the whole paper is concluded and the prospect for further research is presented.