A mathematical model for production planning in hybrid manufacturing-remanufacturing systems

In recent years, environmental legislation, societal pressure, and economic opportunities have motivated many firms to integrate remanufacturing activities into the regular production environment. This presents many new challenges involving the collection, disassembly, refurbishing of used products, and incorporation of remanufacturing activities into new product manufacturing. In this paper, we present a mixed integer programming model addressing production planning problems in such hybrid systems. A Lagrangian decomposition based method is developed to solve the problem efficiently. A numerical example is presented to illustrate the proposed model and the developed solution procedure.