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.