Performance Evaluation of a Hybrid Manufacturing Remanufacturing System Taking Into Account the Machine Degradation

Abstract This paper deals with a manufacturing remanufacturing system composed by two parallel machines, a serviceable inventory, a remanufacturing inventory and customers that demand a constant quantity of product. To describe the system, a stochastic fluid model is adopted that takes into account the return of the used products and the machines degradation. The objective of this paper is to evaluate the optimal serviceable inventory level which allows minimizing the sum of inventory, lost sales costs and the machines degradation cost. For the performance evaluation of the system, the stochastic fluid model is simulated in order to study the impact of the unit degradation costs on the optimal serviceable inventory.

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