Impact of product acquisition on manufacturing and remanufacturing strategies

Gernot Lechner*, Marc Reimann

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)
1 Downloads (Pure)

Abstract

Companies can gain a competitive edge by managing closed-loop supply chains efficiently. This requires the joint consideration of forward and reverse logistic processes. The acquisition of used products is an important factor within the closed-loop context, as the availability of acquired used cores has a direct effect on the manufacturing–remanufacturing disposition strategy. Thus, the acquisition process and the production disposition are highly interrelated. In further consequence, the linked view on an active acquisition process combined with manufacturing–remanufacturing decisions is essential. In this paper, the optimal strategies concerning the acquisition of used cores, manufacturing of new products, and remanufacturing are studied analytically in a two-period model with stochastic, newsvendor-like demands. Given the closed-loop setting, the quantity acquired and remanufactured in the second period is limited to the sales of new products in the first period. An extensive numerical study provides insights into the influence of an active acquisition process on quantities and profit.

Original languageEnglish
Pages (from-to)831-859
Number of pages29
JournalProduction and Manufacturing Research
Volume2
Issue number1
Early online date3 Nov 2014
DOIs
Publication statusPublished - 2014

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