Analysis of MRP Policies with Recovery Options

Abstract

The importance of product recovery aspects demands for integrating reuse and remanufacturing options into material requirements planning. In this paper (within the context of a single-stage system) a recovery option is analyzed which allows for the remanufacturing of reusable products or components. Depending on the source of product returns we consider two different scenarios of reverse logistics: external return flows of used products and internal flows of reworkable products generated by unreliable production processes. For both scenarios an extended MRP approach for material coordination is developed. It is shown that this so-called MRRP approach generates certain types of control rules, and that the structure of these rules depends on the way of integrating forecasted returns of products into the MRP context. These MRP based control rules, as far as possible, are compared with the optimal policy structure developed from approaches of stochastic inventory control for this remanufacturing system. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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