Decision-Making Models on Fixed-Quantity Recovery Considering the Repair Time

To determine the optimal ordering and recovering policy, a system which includes ordering and recovering operations is investigated. The demand of customers and the repair time is constant, and return products from customers are recovered when they are accumulated to a certainty quantity. Decision-making models are formulated to minimize the expected average cost, the sufficient conditions which make the expected average cost minimum are given, the solution procedure is developed to determine the optimal ordering and recovering policy by the elimination theory and the numeric computational method, and the models are validated by a numerical example. Compared with related literatures, the expected average cost is lower. The effect of repair time indicates that it is helpful to lower the expected average cost when the time to transform return products into serviceable products is delayed.