MATEC Web Conf.
Volume 204, 2018International Mechanical and Industrial Engineering Conference 2018 (IMIEC 2018)
|Number of page(s)||9|
|Published online||21 September 2018|
Dynamic lot sizing problem under uncertainty of returned products in remanufacturing industry
Department of Industrial Engineering, Faculty of Engineering Universitas Indonesia, 16424 Depok, Indonesia
* Corresponding author: firstname.lastname@example.org
Remanufacturing processes face uncertainty in the quality of the items being returned by customers, this significant variability complicates the control of inventories. Demands can be satisfied by procured new items, but also by remanufactured returned items. This paper develops dynamic lot sizing model for remanufacturing industry under uncertainty of returned items and proposes Bayesian Inference to estimate the replacement ratio of returned items that used to determine those lot sizes for new items. The objective of this paper is to minimize the total cost composed of holding cost and set-ups cost. A numerical example is provided based on case study. The result shows that total cost is reduced to be 45%.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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