M. Denizel; "Multi-Period Remanafacturing Planning...," April 8, 13:15
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  • M. Denizel; "Multi-Period Remanafacturing Planning...," April 8, 13:15

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Faculty of Engineering and Natural Sciences






                               Multi-Period Remanufacturing Planning With Uncertain Quality of Inputs



Meltem Denizel


Faculty of Management, Sabancı University





In this paper we consider production planning of remanufactured products when inputs have different and uncertain quality levels, and there are capacity constraints. This situation is typical of most remanufacturing environments, where inputs are product returns (also called cores). Production (remanufacturing) cost increases as the quality level decreases, and any unused cores may be salvaged at a value that increases with their quality level. Decision variables include, for each period and under a certain probabilistic scenario, the amount of cores to grade, the amount to remanufacture for each quality level and the amount of inventory to carry over for future periods for un-graded cores, graded cores, and finished remanufactured products. Our model is grounded with data collected at a major OEM that also remanufactures. We formulate the problem as a stochastic program, and illustrate how the deterministic version of the problem yields solutions that cannot be implemented in practice. The stochastic program, although a large linear program, can be solved easily using Cplex. We provide a numeric study to generate insights into the nature of the solution.


Joint work with Mark Ferguson and Gilvan C. Souza.





Meltem Denizel is a professor of operations management in Faculty of Management at Sabancı University. She earned her BSc and MSc degrees in Industrial Engineering at Middle East Technical University. Her PhD degree is from University of Florida, Department of Decision and Information Science at the Warrington School of Business. She is teaching in MBA, EMBA, Ph.D. and Executive Development programs. Her research is in the areas of flexible manufacturing, mathematical modelling, and production lot sizing. She has also been involved in interdisciplinary research in organization studies and technology management, and marketing. She has published in Operations Research, Naval Research Logistics, Production and Operations Management, Operations Research Letters, Computers and OR, European Journal of Operations Research and Journal of the Operational Research Society, Journal of International Research in Marketing, and OR Spectrum. Her current research interest is in product recovery systems and sustainable operations.



Wednesday, April 8th, 2009, 13:15-14:30, FENS G029