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Discrete Dynamics in Nature and Society
Volume 2013 (2013), Article ID 120256, 7 pages
http://dx.doi.org/10.1155/2013/120256
Research Article

Optimal Acquisition and Inventory Control for a Remanufacturing System

1College of Machinery and Automation, Wuhan University of Science & Technology, Wuhan 430081, China
2College of Management, Wuhan University of Science & Technology, Wuhan 430081, China

Received 2 July 2013; Revised 1 September 2013; Accepted 5 September 2013

Academic Editor: Tinggui Chen

Copyright © 2013 Zhigang Jiang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Optimal acquisition and inventory control can often make the difference between successful and unsuccessful remanufacturing. However, there is a greater degree of uncertainty and complexity in a remanufacturing system, which leads to a critical need for planning and control models designed to deal with this added uncertainty and complexity. In this paper, a method for optimal acquisition and inventory control of a remanufacturing system is presented. The method considers three inventories, one for returned item and the other for serviceable and recoverable items. Taking the holding cost for returns, recoverable and remanufactured products, remanufacturing cost, disposal cost, and the loss caused by backlog into account, the optimal inventory control model is established to minimize the total costs. Finally, a numerical example is provided to illustrate the proposed methods.