Development of solution methodologies for multi-product, multi-component, production-inventory planning problem in a component remanufacturing environment considering backorders and quantity discounts

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PhD; 2023; Management studies

Closed loop supply chain has been an area of research which has evolved over the years. This thesis aims to address a problem in this domain, specifically from the perspective of an Original Equipment Manufacturer (OEM) in the discrete product manufacturing industry. The OEM seeks to involve remanufacturing as part of its business process wherein its major concern is to satisfy demands for multiple products from customers. To satisfy the demands of products, the OEM needs to assemble the products using multiple components. These components can be obtained from multiple sources viz: manufacturing, remanufacturing, and purchasing from external suppliers. Incorporating remanufacturing is beneficial for the OEM as it aids in reducing energy consumption and the overall costs. Specifically, the remanufacturing cost is observed to be generally between 40–60% of the manufacturing cost and consuming only 20% of a firm’s effort. Moreover, due to technological constraints, certain components do exist, which cannot be made in-house. Such components need to be only purchased from external suppliers who offer quantity discounts, to motivate the OEM to buy in bulk. Thus, the OEM needs to consider this aspect too while making the purchase decision.