1350. Approximation Algorithms for Lost-sales Inventory Systems with Remanufacturing
Invited abstract in session MA-30: Lot-sizing models, stream Advanced Lot Sizing and Inventory Strategies .
Monday, 8:30-10:00Room: Maurice Keyworth 1.05
Authors (first author is the speaker)
| 1. | Suting Liu
|
| Department of Management Science, University of Science and Technology of China | |
| 2. | Xiting Gong
|
| Department of Decisions, Operations and Technology, The Chinese University of Hong Kong |
Abstract
In this paper, we develop approximation algorithms for two classes of lost-sales inventory systems with remanufacturing. For pure remanufacturing inventory systems with general replenishment lead times, we develop a modified dual-balancing policy and show that the expected cost under this policy is at most twice the optimal cost under a broad class of associated demand processes and mild conditions on system parameters. For hybrid manufacturing/remanufacturing inventory systems with general identical lead times, we develop a dual-balancing policy and show that the
expected cost under this policy is at most four times the optimal cost under similar conditions. When lead time is zero, the expected cost under the dual-balancing policy is at most twice the optimal cost for the general demand and return process. Our numerical study shows that both policies perform well and much better than their theoretical worst-case performance bounds.
Keywords
- Inventory
- Sustainable Development
- Sustainable Development
Status: accepted
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