In this paper a product recovery system for one product is investigated. The system contains one inventory for returned and recoverable items and one for serviceable items. Demands are satisfied from serviceable inventory where backlogging of demands is allowed. In addition, there is the possibility of disposal for the returned products. We assume deterministic but dynamic return and demand rates and a linear cost structure. The Pontryagin maximum principle is used to determine the optimal production, remanufacturing and disposal policy.
|IMA Journal of Mathematics Applied in Business and Industry
|Published - 2000