Multi-product lot-size models for the hybrid system with finite recovery capacity

To determine the manufacture and recovery policy for each product, a hybrid system with finite remanufacture capacity is investigated. Multi-products are manufactured and recovered in the system. Each product at the end of serviceable life is returned from customers at the constant rate, but due to the limitation of remanufacture capacity some return products not for recovery are disposed off. Customers´ demand for each product is constant and fulfilled by serviceable products which consist of manufactured products and recovered products, and shortage is not permitted. The inventory decision-making model is formulated under the (M,1) policy, and recovery sequence and recovery fraction are determined by using the Lagrange multiplier method and greedy algorithm respectively.