Performance evaluation of a closed loop manufacturing system taking into account delivery activity and degradation

This work studies a closed loop manufacturing system which composed of two parallel machines, a manufacturing inventory, a purchase warehouse, a recovery inventory and customers who demand a constant quantity of product. To describe the system, a stochastic fluid model is adopted and which takes into account returned products, remanufacturing products, delivery activity and maintenance actions. The objective is to establish an optimal production control which minimizes the sum of inventory, transportation, lost sales and maintenance costs. In this paper, we consider the degradation of the machines and the transport vehicle. For the performance evaluation of the system, we study the impact of degradations costs on the optimal manufacturing inventory.