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| Final Production and Remanufacturing Decisions for Spare Parts after Closing Production Line |
| SHI Xiaoqian，DONG Shuangshuang，ZHENG Meimei |
| Shanghai Jiao Tong University, Shanghai, China |
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Abstract Faced with the uncertain demand for spare parts after closing the production line, the manufacturer can manage the spare parts inventory in two ways: the final production of new spare parts before the production closure and remanufacturing strategy. A two-period production decision model is developed. When the production line is about to closed, the manufacturer generates a single final production plan of new spare parts and collects the used parts. After closing the production line, the manufacturer can replenish spare parts through remanufacturing. The optimal production quantity of new spare parts and optimal collection rate of used spare parts are characterized through backward induction. The results demonstrated the manufacturer in Period 1 is not always willing to prepare for remanufacturing. The threshold of willingness for manufacturer to participate in the remanufacturing strategy in Period 1 is also derived. Additionally, numerical experiments are conducted to explore the value of the remanufacturing strategy under different settings. The implications in this study can help to promote the application of remanufacture in spare parts management.
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Received: 30 June 2021
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