Optimal production policy of a build-to-order manufacturing system with reverse-logistics through analysis using open queueing network theory

In today's business environment, we are faced with some problems from the viewpoint of ecology; one important problem being the reuse of used products. Used products are generally collected and stored as reusable resources. The remanufacturing production system meets the demand by remanufacturing products utilizing reusable resources in addition to the production of new products. In this case, the flow of reusable resources is called reverse-logistics in contrast to the flow of demand. Naturally, the optimal production policy of the remanufacturing production system with reverse-logistics should be considered. In this article, we formulate a build-to-order remanufacturing production system using the open queueing network theory. The production cost, penalty cost for the delay of due date, and holding cost of used products collected as reusable resources are evaluated using the open queueing network theory. Then, the optimal production policy for manufacturing and remanufacturing using the build-to-order remanufacturing production system is investigated.