| This research considers a remanufacturing enterprise that constitutes a stage in a closed loop supply chain. Each returned item is precisely tested and assigned a quality grade between zero and a hundred. Consequently, acceptance to the facility, acquisition price and remanufacturing cost are all quality dependants. The research implements the newsvendor modeling techniques to model the system when a single remanufacturing facility satisfies a single market's demand or when multiple remanufacturing facilities satisfy multiple markets' demand. Thus, non-linear programming or mixed integer non-linear programming models are proposed to maximize the total profit by selecting facilities to operate, optimal minimum quality to accept into each operating facility and market's demand to satisfy from each operating facility. Returns' quality is considered to be stochastic, while markets' demand could be either stochastic or deterministic. The impact of changing returns, quality and demand uncertainties, and transportation cost on remanufacturing systems are studied. |
