18th ICPR paper: Cost Performance and Bullwhip Effect in a Hybrid Manufacturing and Remanufacturing System with Different Control Policies

Simone Zanoni (1) , Ivan Ferretti (2) , Ou Tang (3)

1 Dipartimento di Ingegneria Meccanica
2 Dipartimento di Ingegneria Meccanica
3 Department of Production Economics

In recent years, remanufacturing has emerged as an important research area. This requires developing methods and models in order to aid companies in systematically evaluating current as well as projected remanufacturing systems. This paper addresses the inventory control problem in a hybrid inventory system with manufacturing and remanufacturing options. In this study, by changing the definition of inventory position of the serviceable stock, we introduce a shift PULL inventory control policy, which is compared with PULL, DUAL and Separate PULL control policies studied before in literature. Besides evaluating the economic consequences with different control policies, we also study system dynamic behaviour such as the bullwhip effect, in order to understand the advantages and disadvantages of different policies. After the experiments, we propose some management guidelines for such a hybrid inventory system. The major findings are: 1) Separate PULL and DUAL can be good alternatives when manufacturing lead time is significantly larger than remanufacturing one; 2) Shifted PULL exhibits good performance when the two lead times differ slightly. Due to the complexity in solving the optimisation problem, a simulation approach is used.

Mots clés: Physical Sciences

Simone Zanoni, Ivan Ferretti, Ou Tang. 18th ICPR paper: Cost Performance and Bullwhip Effect in a Hybrid Manufacturing and Remanufacturing System with Different Control Policies. International Journal of Production Research, 2006, 44 (18-19), pp.3847-3862. ⟨10.1080/00207540600857375⟩. ⟨hal-00512936⟩