Towards an Integrated Optimization Model in Multi-Product Remanufacturing Systems

Due to increasing awareness of sustainability management, circular economy practices such as remanufacturing become more relevant in the industrial landscape. Remanufacturing depicts an industrial process that reconditions old parts to a like-new condition, and thus retains economical value and conserves natural resources. Despite acknowledged operational complications, many remanufacturing enterprises neglect production planning and control activities, which leads to reduced productivity and efficiency. This, in turn, hinders and reduces the willingness to employ remanufacturing schemes more broadly. In response, this paper developed a comprehensive, integrated model of a a real-world remanufacturing system with multiple supply and demand streams. This helps industrial decision-makers to schedule their available resources effectively, operating in a multi-product environment under supply and quality uncertainty. The feasibility of the developed approach is tested in a case study with an OEM remanufacturer. This paper highlights the complicated relationship in remanufacturing systems and forms the basis for the further development of suitable control algorithms.