Manufacturing and Remanufacturing Lot-Size Model with Backordering and Disposal

A manufacturing and remanufacturing system with backordering and disposal is investigated. Returned products from customers are kept in remanufacturable inventory, but only a portion of them are remanufactured and the rest are disposed. Constant demand is satisfied by either manufactured items or remanufactured items which compose serviceable inventory. Excess demand is completely backordered. Two types of policy are analyzed, and the optimal manufacturing and remanufacturing policies are found. The results generalize the models proposed by Konstantaras and Papachristos (2006) and Dobos and Richter(2004).