Chapter 16
Production Planning of Remanufactured
Products with Inventory by Life-Cycle
Simulation
Susumu Okumura, Nobuyoshi Hashimoto, and Taichi Fujita
Abstract Manufacturers can reduce environmental impact and costs by introducing
remanufacturing. In remanufacturing, inventory control of remanufactured and newly
manufactured products should be considered for production planning. It is indispensable for predicting the demand quantity of products and the collecting quantity of
used products to minimize the total cost incurred by remanufacturing and newly
manufacturing. The prediction varies depending on the product characteristics and
the time elapsed since shipment. In this paper, we study a remanufacturing system
minimizing the total cost by a life-cycle simulation method. In the flow of products,
there are two types of inventory: one is a remanufactured and newly manufactured
product inventory before shipment to the market, and the other is a collected product
inventory for used products. Depending on the time elapsed since launch, products
pass through an introductory stage, a growth stage, a maturity stage, and a decline
stage in a usual manner. We analyze the impact on the total cost of the prediction accuracy of the product demand and the collected used products to each stage.
When the ratio of an ordering cost for newly manufactured products to an inventory
holding cost for the finished products has a significant value, or as the life-cycle stage
is approaching the decline stage, the predicting accuracy of collection of the used
products and the product demand has a high impact on the total cost.
Keywords Remanufacturing · Production planning · Inventory · Life-cycle
simulation
S. Okumura · N. Hashimoto (B)
Department of Mechanical Systems Engineering, University of Shiga Prefecture, Shiga, Japan
e-mail: hashimoto.n@mech.usp.ac.jp
T. Fujita
Graduate School of University of Shiga Prefecture, Shiga, Japan
© Springer Nature Singapore Pte Ltd. 2021
Y. Kishita et al. (eds.), EcoDesign and Sustainability I, Sustainable Production, Life Cycle
Engineering and Management, https://doi.org/10.1007/978-981-15-6779-7_16
217
Production Planning of Remanufactured
Products with Inventory by Life-Cycle
Simulation
Susumu Okumura, Nobuyoshi Hashimoto, and Taichi Fujita
Abstract Manufacturers can reduce environmental impact and costs by introducing
remanufacturing. In remanufacturing, inventory control of remanufactured and newly
manufactured products should be considered for production planning. It is indispensable for predicting the demand quantity of products and the collecting quantity of
used products to minimize the total cost incurred by remanufacturing and newly
manufacturing. The prediction varies depending on the product characteristics and
the time elapsed since shipment. In this paper, we study a remanufacturing system
minimizing the total cost by a life-cycle simulation method. In the flow of products,
there are two types of inventory: one is a remanufactured and newly manufactured
product inventory before shipment to the market, and the other is a collected product
inventory for used products. Depending on the time elapsed since launch, products
pass through an introductory stage, a growth stage, a maturity stage, and a decline
stage in a usual manner. We analyze the impact on the total cost of the prediction accuracy of the product demand and the collected used products to each stage.
When the ratio of an ordering cost for newly manufactured products to an inventory
holding cost for the finished products has a significant value, or as the life-cycle stage
is approaching the decline stage, the predicting accuracy of collection of the used
products and the product demand has a high impact on the total cost.
Keywords Remanufacturing · Production planning · Inventory · Life-cycle
simulation
S. Okumura · N. Hashimoto (B)
Department of Mechanical Systems Engineering, University of Shiga Prefecture, Shiga, Japan
e-mail: hashimoto.n@mech.usp.ac.jp
T. Fujita
Graduate School of University of Shiga Prefecture, Shiga, Japan
© Springer Nature Singapore Pte Ltd. 2021
Y. Kishita et al. (eds.), EcoDesign and Sustainability I, Sustainable Production, Life Cycle
Engineering and Management, https://doi.org/10.1007/978-981-15-6779-7_16
217