Paper #636

Title:

A recoverable production planning model

Authors:

Juan P. Soto and Helena Ramalhinho-Lourenço

Date:

July 2002

Abstract:

Aware of the importance of developing new alternatives to improve the performance of the companies, our purpose in this paper is to develop a medium term production planning model that deals with the concepts of Partnership and Reverse Logistics. Our model takes advantage of the synergies of integration, developing a model for global production planning that generates the optimal production and purchasing schedule for all the companies integrating a logistic chain. In a second part of the paper we incorporate products returns to the first model proposed, and analyze the implications they have over this model. We use some examples with different configurations of supply chains varying the number of production plants, distribution centers and recovery plants. To solve the model we have combined optimization and simulation procedures.

Keywords:

Reverse logistics, production planning, remanufacturing, returns, supply chain management, simulation, optimization

JEL codes:

M11, L60, C61

Area of Research:

Operations Management

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