A stochastic production cost model for remanufacturing systems

Growing environmental concern throughout this decade coupled with enforced legislation, customer expectations and economic incentives have forced increasing number of manufacturers to take back their products from end user. Managing this reverse flow of products is called reverse logistics. The stochastic nature of returned products complicates the production planning for remanufacturing systems in reverse logistics. In this thesis a stochastic production cost model, considering various costs associated under different situations for remanufacturing systems of returned products is developed. A search algorithm method is recommended to determine optimal production run size, production rate and space for remanufacturing systems in reverse logistics. This production cost model will help the businesses or "third party" logistics service provider to effectively manage remanufacturing systems of returned products.