Setting the holding cost rates in a two-product system with remanufacturing

摘要: This paper analyzes a two-product system with joint manufacturing and remanufacturing. In such the end-product stock contains both manufactured remanufactured products, while remanufacturable may contain products of different quality. Due to its complex structure, valuation inventories at various stocking points is ambiguous. For two cases regarding quality differentiation we determine holding cost rates that outcomes net present value approach an average are approximately equivalent. We show how correct deviate from traditional methodology demonstrate impact on operational performance.