Inventory control for remanufacturing system with stochastic product returns

The remanufacturing is regarded as a resource-saving and environment-friendly industry. However, inventory control for remanufacturing is facing great challenge caused by uncertainty of product returns, demands and repairing process. In this paper, a single-product remanufacturing system is analyzed and the research of effect caused by stochastic product returns is especially focused on. A kind of pull policy considering the unserviceable inventory and serviceable inventory together is employed. A cost model, the expected value of average single-cycle cost (EASC), is constructed under certain environmental assumptions. The objection is to minimize the EASC by controlling two variables, the serviceable inventory's supplement batch and the remanufacturing product batch. The problem is solved by mathematical method.